- Push-out Score determined
- After less than three years in the position
- Praise, thanks and good wishes for Elghandour
- Keith Grossman taking over
- Elghandour kept it short and said 26 words
(exechange) — Redwood City, California, March 19, 2019 — Rami Elghandour, chief executive of Nevro, leaves. It is an abrupt change. As announced by Nevro Corp. in a news release on Tuesday, March 19, 2019, Rami Elghandour leaves his post as Chief Executive Officer at the 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 8.1 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.
Rami Elghandour’s duties will be taken over by D.Keith Grossman, a former Chief Executive Officer of Thoratec Corporation.
The fact that Rami Elghandour’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
In general, an outsider does not have the constraints of an insider when it comes to leading painful changes or making unpopular decisions.
“Constructive engagement with Broadfin Capital”
A reason for Rami Elghandour’s sudden departure from the CEO post was not explicitly provided. Nevro said: “The leadership appointments follow constructive engagement with Broadfin Capital, LLC …, a significant Nevro stockholder.”
Precise information regarding Rami Elghandour’s future plans was not immediately available.
Nevro said: “Mr. Grossman succeeds Rami Elghandour, who has stepped down as President, CEO and a director of the Company.”
Share price decline
The announcement follows a decline in Nevro Corp.’s share price of 52 percent since May 2018.
Chaired by Michael DeMane
Nevro Corp. is chaired by Michael DeMane.
In the position of CEO since 2016
Rami Elghandour has been the Chief Executive Officer and President of Nevro Corp. since June 1, 2016.
Rami Elghandour joined the Company in October 2012, and has served as the Company’s Chief Business Officer and served as the Company’s President and Chief Executive Officer.
From September 2008 to October 2012, Elghandour managed investments for Johnson & Johnson Development Corporation, or JJDC, where he led several investments and served on the board of directors of a number of private companies, including the Company’s board of directors.
Additionally, he led strategic initiatives in the development and management of JJDC’s portfolio.
From 2001 to 2006, Elghandour worked for Advanced Neuromodulation Systems, Inc. (acquired by St. Jude Medical), a medical device company, where he led firmware design and development on several implantable neurostimulators.
Elghandour received an M.B.A. from the Wharton School of the University of Pennsylvania and a B.S. in Electrical and Computer Engineering from Rutgers University School of Engineering.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the likelihood that Rami Elghandour was pushed out or felt pressure to leave the position.
exechange reached out to Nevro and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 12.2019 ($).