Express CEO David Kornberg leaves post abruptly

  • Push-out Score determined
  • After less than four years in the position
  • Praise, thanks and good wishes for Kornberg
  • Matt Moellering taking over in the interim

(exechange) — Columbus, Ohio, January 22, 2019 — This news came the day after Martin Luther King, Jr. Day. David Kornberg, chief executive of Express, leaves the position. It is an abrupt change. As announced by Express Inc. in a news release and in a regulatory filing published on Tuesday, January 22, 2019, David G. Kornberg leaves his post as Chief Executive Officer at the fashion apparel retailer after less than 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 8.5 years, according to data compiled by exechange.

Kornberg leaves the company effective February 21, 2019.

David Kornberg’s duties will be taken over in the interim by Matthew C. (Matt) Moellering, currently Chief Operating Officer of Express, Inc., as Interim Chief Executive Officer.

No reason given

In the announcement, Express did not explicitly explain the obviously compelling reason for David Kornberg’s sudden move, leaving room for speculation.

Precise information regarding David Kornberg’s future plans was not immediately available.

Alarm signal

Generally speaking, it is often an alarm signal for investors when a CEO leaves the position abruptly and without a reasonable explanation.

“Will no longer serve”

Express said: “Effective January 22, 2019, Mr. Kornberg will no longer serve as Chief Executive Officer, President or as a member of the Board of Directors.”

Share price decline

The management change announcement follows a decline in Express, Inc.’s share price of 75 percent since March 2016.

Chaired by Mylle Mangum

Express, Inc. is chaired by Mylle Mangum.

Mangum is the Chief Executive Officer of IBT Enterprises, LLC (formerly International Banking Technologies), a position she has held since October 2003, and is also Chairman and CEO of IBT Holdings, a position she has held since July 2007.

In the position of CEO since 2015

Kornberg has served as the Company’s President and CEO since January 30, 2015.

He has also served as a member of the Board since becoming CEO.

Kornberg first joined Express in 1999 and has held various roles of increasing responsibility, including as President since October 2012, Executive Vice President of Men’s Merchandising and Design from December 2007 to October 2012, and General Merchandise Manager of the Express Men’s business prior to that.

From 2002 to 2003, Kornberg was Vice President of Business Development for Disney Stores. Kornberg spent the first ten years of his career with Marks & Spencer PLC in the United Kingdom.

Kornberg will remain employed by the company through February 21, 2019.

Push-out Score determined

The Push-out Score™ determined by exechange gauges the likelihood that a manager was pushed out or felt pressure to leave the position.

exechange reached out to Express and offered the company the opportunity to comment on the score.

Read the full story in the exechange report 4.2019 ($).