- Push-out Score suggests push-out forces
- After about four years in the position
- Praise and thanks for Carrington
- Gary Moore taking over
- Carrington kept it short and said 56 words
(exechange) — Denver, Colorado, December 4, 2018 — Chris Carrington, chief executive of ServiceSource, leaves. It is an abrupt change. As announced by ServiceSource International Inc. in a news release on Tuesday, December 4, 2018, Christopher M. (Chris) Carrington leaves his post as Chief Executive Officer at the IT service management company after about four years in the role, effective immediately.
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 years, according to data compiled by exechange.
Chris Carrington’s duties will be taken over by Gary B. Moore, a former President and COO of Cisco Systems, Inc.
Already a director
Moore is already a director of ServiceSource. 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, Moore understands the expectations and dynamics of the board and has knowledge of ServiceSource’s organization, risk-management practices and strategy.
No reason given
In the announcement, ServiceSource did not explicitly explain the obviously compelling reason for Chris Carrington’s sudden move, leaving room for speculation.
Precise information about Chris Carrington’s future plans was not immediately available.
Generally speaking, it is often an alarm signal for stockholders when a CEO leaves the post abruptly and without a reasonable explanation.
ServiceSource said: “Christopher M. Carrington has stepped down from his role as CEO.”
“Not related to any disagreements”
“Mr. Carrington’s departure is not related to any disagreements regarding strategy, financial disclosures, accounting or legal matters,” ServiceSource said.
It is a phrase that may be intended to prevent false rumors. It may also fuel further speculation and raise more questions than it answers. Such a phrase should be read very carefully. The exact wording may be insightful.
Share price decline
The change follows a decline in ServiceSource International, Inc.’s share price of 78 percent since February 2017.
In the position of CEO since 2014
Christopher M. Carrington has served as the Company’s Chief Executive Officer since December 2014.
Prior to joining the Company, Carrington served as Executive Vice President, Global Delivery, at Sykes Enterprises Incorporated, a business process outsourcing services and IT-enabled services company, from September 2012 to June 2014.
From July 2006 to September 2012, Carrington served as President, Chief Executive Officer and a director of Alpine Access, Inc., a privately held company, which was acquired by Sykes Enterprises Incorporated in August 2012.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Chris Carrington’s sudden 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 50.2018 ($).