- Push-out Score determined
- After less than three and a half years in the position
- Praise, thanks and good wishes for Broader
- Bonnie Brooks taking over in the interim
- Search for a successor
(exechange) — Fort Myers, Florida, April 24, 2019 — Shelley Broader, chief executive of Chico’s, leaves. As announced by Chico’s FAS Inc. in a news release on Wednesday, April 24, 2019, Shelley G. Broader leaves her post as chief executive officer at the retail women’s clothing chain after less than three and a half 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 7.7 years, according to data compiled by exechange.
Chico’s will undertake a search for a successor.
Shelley Broader’s duties will be taken over in the interim by Bonnie R. Brooks, a former chief executive officer of Hudson’s Bay Company, as interim chief executive officer.
Already a director
Brooks is already a director of Chico’s. 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, Brooks understands the expectations and dynamics of the board and has knowledge of Chico’s’s organization, risk-management practices and strategy.
No reason given
In the announcement, Chico’s did not explicitly explain the reason for Shelley Broader’s move.
Precise information regarding Shelley Broader’s future plans was not immediately available.
Chico’s said: “Bonnie Brooks, former Vice Chair, President and CEO of Hudson’s Bay Company and a current member of the Chico’s FAS Board of Directors, has been appointed Interim CEO of the Company, effective immediately. This appointment follows the resignation of Shelley Broader from her roles as CEO and President, and as member of the Board.”
Share price decline
The announcement follows a decline in Chico’s FAS, Inc.’s share price of 69 percent since December 2015.
Chaired by David Walker
Chico’s FAS, Inc. is chaired by David Walker.
David F. Walker has been a director since 2005 and currently serves as Chair of the Board.
In the position of CEO since 2015
Shelley G. Broader has been a director since December 2015 at which time she was also appointed as the Company’s Chief Executive Officer and President.
Broader joined the Company after having served as President and Chief Executive Officer of the Walmart Europe, Middle East and Sub-Saharan Africa region since 2014. Walmart is a multinational retail corporation.
She previously served Walmart in various roles, including as President and Chief Executive Officer of Walmart Canada from 2011 to 2014, Chief Merchandising Officer for Walmart Canada from 2010 to 2011, and Senior Vice President for Sam’s Club in 2010.
Prior to joining Walmart in 2010, Broader was President and Chief Operating Officer of The Michaels Companies, Inc. (“Michaels”), an arts and crafts retail chain, from 2008 to 2009.
Before joining Michaels, Broader enjoyed a 17-year career with Delhaize Group, a food supermarket retailer, where, under the Hannaford banner, she held a range of leadership roles across the Company’s operations, merchandising, distribution, strategy and marketing divisions.
Broader is a member of the board of directors of Raymond James Financial, Inc. and Moffitt Cancer Center’s National Board of Advisors.
She also serves on the board of directors and executive committee of the Florida Council of 100 as well as the board of directors of RILA, the Retail Industry Leaders Association.
From July 2014 to November 2015, Broader served on the board of directors of Massmart Holdings, Ltd., a publicly traded South African firm, affiliated with Walmart.
From March 2011 to March 2013, she served on the board of directors of Walmart de Mexico and CentroAmerica, a publicly traded Mexican firm, also affiliated with Walmart.
She is a graduate of Washington State University.
At the time of Shelley Broader’s appointment as Chief Executive Officer at Chico’s, David F. Walker, Chair of the Chico’s FAS Board of Directors, had said: “[W]e are also delighted to welcome Shelley to the Chico’s FAS team. She brings a remarkable track record, with a global perspective and a keen understanding of how to engage consumers and partner with suppliers to drive profitable growth in a competitive retail environment. The Company conducted an extensive CEO search and interviewed a number of highly qualified candidates. Shelley distinguished herself as our top choice, having the extensive retail industry expertise, leadership skills and appreciation for superior service that we believe will take Chico’s FAS and each of our brands into our next phase of growth and value creation.”
At the time of her appointment as Chief Executive Officer at Chico’s, Broader had said: “It is an honor to be named President and CEO of Chico’s FAS. I am thrilled to lead such a dynamic team. The Company has made great strides in improving its operating foundation and benefits from a powerful portfolio of brands, each with a unique identity and opportunity for growth. I look forward to working with the Chico’s FAS Board, its Brand Presidents, members of the Executive Committee, and team of associates. I share their passion for superior customer service and applaud the technology and other initiatives underway to improve service and efficiencies. Given the Company’s many strengths, I have great confidence that we can continue to grow and succeed, driving value for our shareholders and delivering on our brand promise to customers through Chico’s FAS’s dedicated employees.”.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
exechange reached out to Chico’s and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 17.2019 ($).