- Push-out Score determined
- After less than three years in the position
- Praise and thanks for MacDonald
- Brian Krzanich taking over
- MacDonald said 92 words
(exechange) — Hoffman Estates, Illinois, November 7, 2018 — Brian MacDonald, chief executive of CDK Global, leaves the position. It is an abrupt change. As announced by CDK Global Inc. in a news release and in a regulatory filing published on Wednesday, November 7, 2018, Brian Patrick MacDonald leaves his post as chief executive officer at the software company after less than three years in the role, effective immediately.
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 9.2 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.
MacDonald leaves the company effective June 30, 2019.
Brian MacDonald’s duties will be taken over by Brian Krzanich, most recently chief executive officer of Intel.
The fact that Brian MacDonald’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
“The right time”
Brian MacDonald’s sudden departure from the CEO post is explained as follows. Leslie Brun, chairman, Board, CDK Global, said: “In evaluating the future of CDK, the Board and Brian MacDonald concluded that this is the right time to bring in a proven technology CEO to drive top-line growth and help CDK take full advantage of its many opportunities.”
Precise information about Brian MacDonald’s future plans was not immediately available.
CDK Global said: “Krzanich succeeds Brian MacDonald who will assist in the transition.”
CDK Global further said: “Mr. Krzanich succeeds Brian MacDonald, who will resign as President, Chief Executive Officer and director.”
Share price decline
The change follows a decline in the share price of CDK Global, Inc. since January 2018.
Chaired by Leslie Brun
CDK Global, Inc. is chaired by Leslie Brun.
In the position of CEO since 2016
MacDonald has served as the Company’s President since January 1, 2016, as the Company’s Chief Executive Officer since March 8, 2016, and as a member of the Company’s Board of Directors since June 15, 2015.
MacDonald has also served as a director of Suncor Energy, an integrated energy company, since July 2018.
Prior to joining CDK Global, MacDonald served as President and Chief Executive Officer of Hertz Rental Equipment Corporation from June 2014 to May 2015, and as interim Chief Executive Officer of Hertz Corporation from September 2014 to November 2014.
Prior to Hertz, MacDonald served as President and Chief Executive Officer of ETP Holdco Corp., an entity formed following Energy Transfer Partners’ $5.3 billion acquisition of Sunoco, Inc. in 2012, where MacDonald had served as Chairman, President and Chief Executive Officer prior to ETP’s acquisition of Sunoco.
During his tenure at Sunoco, the company undertook a substantial restructuring to strengthen and transform the organization and better position it for growth.
Sunoco exited unprofitable operations, significantly reduced costs, improved efficiencies, and refocused on established high-return businesses.
MacDonald has also held executive management roles at Dell, General Motors Corporation, and Isuzu Motors Limited.
MacDonald previously served on the board of directors of Computer Sciences Corporation from August 2013 to April 2017, Sunoco and Sunoco Logistics from March 2012 to October 2012 and October 2009 to October 2012, respectively, and Ally Financial, Inc. from May 2013 to July 2014 following his appointment by the U.S. Department of the Treasury.
Push-out Score determined
The Push-out Score™ determined by exechange suggests that push-out forces have contributed to the change.
Read the full story in the exechange report 46.2018 ($).