Pioneer CEO Tim Dove leaves abruptly

  • Push-out Score determined
  • After about two years in the position
  • Praise, thanks and good wishes for Dove
  • Scott Sheffield taking over
  • Dove kept it short and said 59 words

(exechange) — Dallas, Texas, February 21, 2019 — Tim Dove, chief executive of Pioneer, leaves — as “mutually agreed.” It is an abrupt change. As announced by Pioneer Natural Resources Co. in a news release on Thursday, February 21, 2019, Timothy L. (Tim) Dove leaves his post as Chief Executive Officer at the independent oil and gas exploration and production company, after about two 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 8.2 years, according to data compiled by exechange. Only 23 percent of the CEOs who departed over the past 12 months left the position within three years.

Tim Dove’s duties will be taken over by Scott D. Sheffield, most recently Chairman of the Board of Pioneer Natural Resources Company.

“Now is the right time”

Tim Dove’s sudden departure from the CEO post is explained as follows. Scott Sheffield said: “Tim has expressed his desire to retire and we have mutually agreed that now is the right time.”

Precise information regarding Tim Dove’s future plans was not immediately available.

Alarm signal

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

“Retire”

Pioneer said: “Timothy L. Dove will retire as CEO and a Board Director effective immediately.”

“Enhance performance and capital efficiency”

Scott Sheffield stated: “Over the last several years, our industry has changed significantly, and we have become a pure play Permian company. Our Board and I are focused on continuing to enhance performance and capital efficiency and delivering strong results for our shareholders. In the coming weeks, I plan to engage with our employees and shareholders to understand their views on how to expand Pioneer’s industry leadership position.”

Share price decline

The announcement follows a decline in Pioneer Natural Resources Company’s share price of 33 percent since May 2018.

In the position of CEO since 2017

Timothy L. Dove has been the Chief Executive Officer of Pioneer Natural Resources Company since January 1, 2017 and has been its President since November 18, 2004.

Dove was named the Company’s President and CEO on January 1, 2017, pursuant to the succession process announced in May 2016.

He held the positions for the Company of President and Chief Operating Officer from December 2004 to January 2017, Executive Vice President and Chief Financial Officer from February 2000 to November 2004 and Executive Vice President – Business Development from August 1997 to January 2000.

Dove joined Parker & Parsley Petroleum Company, a predecessor of the Company (together with its predecessor companies, “Parker & Parsley”), in 1994 as a Vice President and was promoted to Senior Vice President – Business Development in October 1996, in which position he served until the Company’s formation in August 1997.

Before joining Parker & Parsley, Dove was employed with Diamond Shamrock Corp. and its successor, Maxus Energy Corp., in various capacities in international exploration and production, marketing, refining, and planning and development.

Dove also served as President and Chief Operating Officer of the general partner of Pioneer Southwest Energy Partners L.P. (“Pioneer Southwest”), which was a majority-owned subsidiary of the Company, from June 2007 through the Company’s acquisition of Pioneer Southwest in December 2013.

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 Pioneer and offered the company the opportunity to comment on the score.

Read the full story in the exechange report 8.2019 ($).