- Push-out Score determined
- After less than three years in the position
- Praise, thanks and good wishes for Drees
- Fred Parks taking over
- Drees kept it short and said 49 words
(exechange) — Plano, Texas, January 31, 2019 — Scott Drees, chief executive of Nuvectra, leaves. It is an abrupt change. As announced by Nuvectra Corp. in a news release on Thursday, January 31, 2019, Scott F. Drees leaves his post as Chief Executive Officer at the neurostimulation medical device 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 8.3 years, according to data compiled by exechange. Only 24 percent of the CEOs who departed over the past 12 months left the position within three years.
Scott Drees’s duties will be taken over by Fred B. Parks, most recently Chief Executive Officer of Analogic Corporation.
Already a director
Parks is already a director of Nuvectra. 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.
Having been a director, Parks understands the expectations and dynamics of the board and has knowledge of Nuvectra’s organization, risk-management practices and strategy.
“To drive robust diversified growth”
A reason for Scott Drees’s sudden departure from the CEO post was not explicitly provided. Joseph A. Miller, Chairman of the Board, said: “As we anticipate the approval of Virtis, we are extremely confident that Fred is the right leader to drive robust diversified growth based on his deep knowledge of the Company, its technology and strategic goals.”
Precise information regarding Scott Drees’s future plans was not immediately available.
Nuvectra said: “His appointment follows Scott F. Drees’s decision to step down as CEO and coincides with the election by the Board of Directors of Mr. Christopher G. Chavez as a Director and member of the Company’s Compensation Committee.”
Share price decline
The announcement follows a decline in Nuvectra Corporation’s share price of 42 percent since October 2018.
Chaired by Joseph A. Miller
Nuvectra Corporation is chaired by Joseph A. Miller.
Miller retired in April 2012 as Executive Vice President and Chief Technology Officer for Corning Inc., a position in which he had served since 2001.
In the position of CEO since 2016
Scott F. Drees has been the Chief Executive Officer and Director of Nuvectra Corporation since March 7, 2016.
Prior to joining Nuvectra on a full-time basis, Drees served as a consultant to Nuvectra and the Company’s subsidiaries Algostim and PelviStim since August 2009.
In addition, from January 2008 to July 2015, Drees also served as President and Chief Executive Officer of Neuromodulation Ventures, LLC, which focused on incubating new neuromodulation companies.
Previously in his thirty-four year career in the medical device industry, Drees served in various executive positions, including, founding division President and, later, Executive Vice President, Worldwide Sales and Marketing, at Advanced Neuromodulation Systems, Inc., or ANS, a neuromodulation company that was acquired by St. Jude Medical, Inc. in 2005, and also various other positions at St. Jude Medical, Boston Scientific Corporation and Johnson & Johnson’s Codman Neuro division.
Drees previously served as a director of Neuros Medical, Inc., a privately-held neuromodulation company until August 2017.
Drees earned a B.S. from St. Joseph’s University in Philadelphia.
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 Nuvectra and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 5.2019 ($).