- Push-out Score determined
- After almost 13 years in the position
- Praise for Foutch
- Jason Pigott taking over
- Foutch said 90 words
(exechange) — Tulsa, Oklahoma, April 24, 2019 — Randy Foutch, chief executive of Laredo, leaves. As announced by Laredo Petroleum Inc. in a news release and in a regulatory filing published on Wednesday, April 24, 2019, Randy A. Foutch leaves his post as chief executive officer at the Permian Basin oil and gas operator after almost 13 years in the role, effective during the fourth quarter of 2019.
It is the end of an era.
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. Only 29 percent of the CEOs who departed over the past 12 months left the position after more than 10 years.
Randy Foutch’s duties will be taken over by Mikell J. (Jason) Pigott, most recently executive vice president – operations and technical services of Chesapeake Energy Corporation.
It is a generational change as well. Jason Pigott is about 22 years younger than Randy Foutch.
The fact that Randy Foutch’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.
“Succession planning process”
Randy Foutch’s departure from the CEO post is explained as follows. Foutch said: “Jason’s appointment is the culmination of a comprehensive succession planning process that has been years in the making and that we began implementing in October of 2018.”
Precise information regarding Randy Foutch’s future plans was not immediately available.
Laredo said: “Mr. Pigott will succeed Randy A. Foutch as Laredo’s Chief Executive Officer during the fourth quarter of 2019.”
Foutch said: “I am excited to be guiding this transition for Laredo and have no doubt that Jason’s succession will be smoothly implemented to allow for my retirement.”
Share price decline
The announcement follows a decline in Laredo Petroleum, Inc.’s share price of 89 percent since June 2014.
In the position of CEO since 2006
Randy A. Foutch founded Laredo Petroleum, Inc. in October 2006 and has been its Chairman of the Board and Chief Executive Officer since then.
He also served as Laredo’s President from October 2006 to July 2008.
Foutch has more than 34 years of experience in the oil and gas industry.
Prior to the Company’s formation, Foutch founded Latigo Petroleum, Inc. (“Latigo”) in 2001 and served as its President and Chief Executive Officer until it was sold to Pogo Producing Co. in May 2006.
Previous to Latigo, Foutch founded Lariat Petroleum, Inc. (“Lariat”) in 1996 and served as its President until January 2001 when it was sold to Newfield Exploration Co.
He is currently serving on the board of directors of Helmerich & Payne, Inc. (where he is a member of its human resources and nominating and corporate governance committees).
Foutch is also a member of the National Petroleum Council and the Advisory Council of the Energy Institute at the University of Texas, Austin.
From 2013 until his resignation in June 2015, he served on the board of directors of Cheniere Energy, Inc. From 2006 to August 2011, he served on the board of directors of Bill Barrett Corporation and from 2006 to 2008, on the board of directors of MacroSolve, Inc.
Foutch also serves on the University of Tulsa Board of Trustees and several nonprofit and private industry boards.
He holds a Bachelor of Science in Geology from the University of Texas and a Master of Science in Petroleum Engineering from the University of Houston.
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 Laredo and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 17.2019 ($).