- Push-out Score suggests push-out forces
- After less than three years in the position
- Praise for Reinhold
- Barry Litwin taking over
- Reinhold said 83 words
(exechange) — Port Washington, New York, October 8, 2018 — This news came on Columbus Day. Larry Reinhold, chief executive of Systemax, leaves. As announced by Systemax Inc. in a news release on Monday, October 8, 2018, Lawrence P. (Larry) Reinhold leaves his post as Chief Executive Officer at the provider of industrial products after less than three years in the role, effective January 7, 2019.
No company wants a CEO to flame out in the first years.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 9.1 years, according to data compiled by exechange. Only 20 percent of the CEOs who departed over the past 12 months left the position within three years.
Reinhold’s duties will be taken over by Barry Litwin, currently Chief Executive Officer of Adorama, Inc.
Already a director
Litwin is already a director of Systemax. Often a board member is a last resort, someone who is turned to in desperation when a company cannot find suitable candidates. On the other hand, directors-turned-executives represent a blend of outsider and insider.
They don’t have the constraints of a pure insider when it comes to leading painful changes or making unpopular decisions, and they have more company knowledge than a pure outsider.
Having been a director, Litwin understands the expectations and dynamics of the board and has knowledge of Systemax’s organization, risk-management practices and strategy.
“The time is right for him to move on to new challenges”
Reinhold’s departure from the CEO post is explained as follows. Richard Leeds, Executive Chairman, said: “Larry has been with Systemax for nearly 12 years and ascended to the CEO role three years ago, and working closely with the Board, has successfully led the Company through numerous planned restructuring and business improvement initiatives. Larry has done an exceptional job leading the Company, and shareholder value has grown significantly through this process. With these initiatives complete, we determined with Larry that the time is right for him to move on to new challenges, and for us to further leverage the platform Larry helped us build.”
Precise information about Reinhold’s future plans was not immediately available.
Systemax said: “Larry Reinhold, President and Chief Executive Officer and a member of the Systemax Board of Directors, will step down from his management roles at the Company on that date and will assist Mr. Litwin in his transition to his new responsibilities over the next several months.”
Share price decline
The change follows a decline in the share price of Systemax Inc. since August 2018.
Chaired by Richard Leeds
Systemax Inc. is chaired by Richard Leeds.
Leeds has been with Systemax for over 35 years and has served as Chairman and CEO from 1995 to 2016.
In the position of CEO since 2016
Lawrence P. Reinhold has been the Chief Executive Officer and President at Systemax Inc. since March 10, 2016.
Lawrence Reinhold joined Systemax in January 2007 and served as Executive Vice President and CFO from that date until becoming the Company’s President and CEO in March 2016.
In this expanded role, he assumed overall responsibility for the Company’s operations, including all lines of business and functional groups.
Additionally, prior to joining Systemax, Reinhold was the Chief Financial Officer of a publicly traded developer and manufacturer of medical devices; the Chief Financial Officer of a publicly traded communications software company; and a regional Managing Partner of a Big 4 International Public Accounting Firm.
Reinhold is a Certified Public Accountant.
From 2011 through 2013, he also served on the board of directors and audit committee of Pulse Electronics, a publicly traded electronics manufacturer.
Reinhold was selected to serve as a director on the Company’s Board due to his contributions since joining Systemax and his extensive experience and expertise in business, strategy, finance, accounting, SEC reporting, public company management, mergers and acquisitions and financial systems as well as his serving as a CFO of other public technology companies and a partner with an international accounting firm.
Litwin and Reinhold will remain on the Board of Directors.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Larry Reinhold’s move.
The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the change.
Read the full story in the exechange report 42.2018 ($).