- Push-out Score suggests push-out forces
- After around 16 years in the position
- Praise and thanks for Falk
- Mike Hsu taking over
- Falk will remain as Executive Chairman at Kimberly-Clark
- Falk kept it short and said 55 words
(exechange) — Dallas, Texas, October 22, 2018 — Tom Falk, chief executive of Kimberly-Clark, leaves the position. As announced by Kimberly-Clark Corporation in a news release and in a regulatory filing published on Monday, October 22, 2018, Thomas J. (Tom) Falk leaves his post as Chief Executive Officer at the personal care corporation after around 16 years in the role, effective January 1, 2019.
It is the end of an era.
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 16 percent of the CEOs who departed over the past 12 months left the position after more than 15 years.
Tom Falk’s duties will be taken over by Michael D. (Mike) Hsu, currently President and Chief Operating Officer of Kimberly-Clark Corporation.
“Focus on executive succession planning”
Tom Falk’s departure from the CEO post is explained as follows. Ian Read, Lead Director, said: “As part of the Board’s ongoing focus on executive succession planning, Tom and Mike have worked closely with the Board over the past two years to plan this transition.”
Falk will remain as Executive Chairman at Kimberly-Clark
“Falk will become Executive Chairman of the Kimberly-Clark Board of Directors to help ensure a smooth transition,” Kimberly-Clark said.
Kimberly-Clark said: “Hsu succeeds Thomas J. Falk, 60, who has served as Chief Executive Officer since 2002 and Chairman of the Board of Directors since 2003.”
Share price decline
The change follows a decline in the share price of Kimberly-Clark Corporation since February 2017.
In the position of CEO since 2002
Thomas J. Falk has been an Executive Chairman of Kimberly-Clark Corporation since February 18, 2003 and has been its Chief Executive Officer since September 12, 2002.
Falk was elected Chairman of the Board and Chief Executive Officer in 2003 and President and Chief Executive Officer in 2002.
Prior to that, he served as President and Chief Operating Officer since 1999.
Falk previously had been elected Group President — Global Tissue, Pulp and Paper in 1998, where he was responsible for Kimberly-Clark’s global tissue businesses.
Earlier in his career, Falk had responsibility for Kimberly-Clark’s North American Infant Care, Child Care and Wet Wipes businesses.
Falk joined Kimberly-Clark in 1983 and has held other senior management positions.
He has been a director of Kimberly-Clark since 1999.
He also serves on the board of directors of Catalyst Inc., the University of Wisconsin Foundation, and the Consumer Goods Forum, and serves as a governor of the Boys & Girls Clubs of America.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Tom Falk’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 44.2018 ($).