- Push-out Score suggests push-out forces
- After less than three and a half years in the position
- Praise, thanks and good wishes for Maredia
- Jim Nielsen and Brad Lukow taking over in the interim
- Search for a successor
- Maredia kept it short and said 49 words
(exechange) — Phoenix, Arizona, November 29, 2018 — Amin Maredia, chief executive of Sprouts Farmers Market, leaves. It is a change at short notice. As announced by Sprouts Farmers Market Inc. in a news release on Thursday, November 29, 2018, Amin N. Maredia, chief executive officer, leaves the supermarket chain after less than three and a half years in the role, effective December 30, 2018.
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.
Sprouts Farmers Market will undertake a search for a successor.
Amin Maredia’s duties will be taken over in the interim by Jim Nielsen and Brad Lukow, most recently president and chief operating officer; and chief financial officer of Sprouts Farmers Market, Inc., as co-interim chief executive officers.
“To pursue other interests”
Amin Maredia’s imminent departure from the CEO post is explained as follows. Sprouts Farmers Market said: “Amin Maredia, the Company’s chief executive officer and member of the board of directors, will transition away from the Company on December 30, 2018 to pursue other interests.”
The phrase “to pursue other interests” opens the door to speculation.
Precise information about Amin Maredia’s future plans was not immediately available.
Generally speaking, it is often an alarm signal for stockholders when a CEO leaves the position at short notice and without comprehensible reasons being given.
Share price decline
The change follows a decline in Sprouts Farmers Market, Inc.’s share price of 45 percent since October 2013.
Chaired by Joseph Fortunato
Sprouts Farmers Market, Inc. is chaired by Joseph Fortunato.
Joseph Fortunato has served as a member of the Company’s board of directors since 2013 and assumed his role as chairman in February 2017.
In the position of CEO since 2015
Amin N. Maredia has been the Chief Executive Officer of Sprouts Farmers Market, Inc. since August 6, 2015.
Prior to his promotion to Chief Executive Officer, Maredia served as the Company’s Chief Financial Officer from August 2011 to August 2015.
Prior to joining Sprouts, Maredia served in key strategic and finance roles for Burger King Corporation, one of the world’s largest fast food retailers, including Vice President – North America and Latin America Finance from 2009 to 2010, and Vice President – Strategic Planning from 2006 to 2009.
Maredia began his career at PricewaterhouseCoopers in 1994, is a graduate of the Harvard Business School General Management Program and holds an undergraduate degree in accounting from the University of Houston.
As a general rule, when a top manager announces to step down with no permanent successor in place, it’s a sign that the move was unplanned and too early.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Amin Maredia’s imminent 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 49.2018 ($).