Uncategorized

TrueCar CEO Chip Perry leaves

  • Push-out Score determined
  • After less than three and a half years in the position
  • Praise, thanks and good wishes for Perry
  • Mike Darrow taking over in the interim
  • Search for a successor
  • Perry said 110 words

(exechange) — Santa Monica, California, June 3, 2019 — Chip Perry, chief executive of TrueCar, leaves. As announced by TrueCar Inc. in a news release and in a regulatory filing published on Monday, June 3, 2019, Victor A. (Chip) Perry, Chief Executive Officer, has left the digital automotive marketplace after less than three and a half years in the role, effective May 31, 2019.

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 7.8 years, according to data compiled by exechange.

TrueCar will undertake a search for a successor.

Chip Perry’s duties were taken over in the interim by Michael (Mike) Darrow, most recently Executive Vice President of Partner & OEM Development and President of ALG of TrueCar, Inc., as interim President and Chief Executive Officer.

Chip Perry’s move is part of a management shake-up also involving the position of Executive Vice President of Dealer Sales and Service.

“TrueCar is well positioned”

A reason for Chip Perry’s departure from the CEO post was not explicitly provided. Perry said: “I believe TrueCar is well positioned to create even more fabulous new products and services that will provide significant additional value to consumers, dealers, and OEMs.”

Precise information regarding Chip Perry’s future plans was not immediately available.

“Retired”

TrueCar said: “TrueCar, Inc. … announced today that Chip Perry, its President and Chief Executive Officer, has retired.”

TrueCar further said: “On May 31, 2019, Victor A. “Chip” Perry III, President and Chief Executive Officer of TrueCar, Inc. …, notified the Company of his decision to retire from the Company and resigned from his positions as President and Chief Executive Officer of the Company, and each of his other positions at the Company and its affiliates. Mr. Perry’s resignations were effective May 31, 2019 …, except for his resignation from the Board of Directors of the Company …, which is expected to become effective at a later date. In connection with his resignation, Mr. Perry also relinquished his role as “principal executive officer” of the Company as of the Resignation Date.”

Share price decline

The announcement follows a decline in TrueCar, Inc.’s share price of 70 percent since July 2017.

Chaired by Christopher Claus

TrueCar, Inc. is chaired by Christopher Claus.

Christopher Claus has served as a member of the Company’s Board of Directors since April 2014 and as Chairman of the Board since February 2016.

In the position of CEO since 2015

TrueCar is planning for Perry to continue supporting the Company in an advisory capacity.

Perry has been the Chief Executive Officer and President of TrueCar, Inc. since December 15, 2015.

Victor A. “Chip” Perry has served as the Company’s President, Chief Executive Officer and a member of the Company’s Board since December 2015.

From August 2015 until he joined the Company, Perry was the President and Chief Executive Officer of RentPath LLC, an operator of online real estate rental websites and mobile applications.

Perry was President and Chief Executive Officer of AutoTrader Group, Inc., an online automotive marketplace, from August 1997 until March 2013, and served as a member of its board of directors between August 1999 and March 2013.

Perry served as a member of the board of directors of Auto Trader Group plc from April 2014 through March 2016.

Perry holds an M.S. in Civil Engineering from the University of Virginia and an M.B.A. from Harvard Business School.

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

Read the full story in the exechange report 23.2019 ($).

Read also:

  • Are boards proactive or reactive to industry shifts? By David F. Larcker and Brian Tayan * (exechange) — July 1, 2019 — Public company boards are often criticized for being too slow to pull the trigger in firing an underperforming CEO. exechange data, however, casts new doubt on...
  • The younger CEOs are, the sooner they go public By Dirk Schiereck * (exechange) — October 1, 2019 — The number of exchange-listed companies in Germany has been declining for decades and is today nearly 40% below the level of 1950. To understand why this development is so extreme in...
  • PG&E: Another CEO goes down with the ship By David F. Larcker and Brian Tayan * (exechange) — February 1, 2019 — The bankruptcy of PG&E Corp. — and the resignation of CEO Geisha Williams — is an unfortunate reminder of the critical importance of risk management programs and...
  • Thomas Cook illustrates the three main reasons for corporate stumbles By Jo Whitehead * (exechange) — November 1, 2019 — Our research looks at CEOs who leave under a cloud following a period of poor performance. A recent example is the bankruptcy of Thomas Cook, which illustrates the three main...
  • Industry cycles play a role in corporate stumbles By Jo Whitehead * (exechange) — December 1, 2019 — In our research into 10 years of corporate stumbles (in which the CEO leaves under a cloud after a significant drop in share price), the majority of stumbles occur due...
  • Kingfisher: A case study of the effects of CEO bias By Jo Whitehead * (exechange) — April 1, 2019 — A common reason for CEO exit is failure when taking on a tough challenge. While this challenge is often growth related (M&A or international growth), a recent example suggests an alternative...
  • CEO pay — The rewards of power By Harry Garretsen and Janka Stoker * (exechange) — May 1, 2019 — CEO pay is on the rise. For the U.S., CEO-to-worker compensation ratio in 1965 was 20 to 1, but has risen to a staggering 312 to 1...
  • Lessons from the departure of the BMW boss By Jo Whitehead * (exechange) — August 1, 2019 — One might feel sympathy for Harald Krüger, who just exited as BMW’s boss. The industry faces a shift to electric cars, and reports suggest that BMW has fumbled the job...
  • Female CEOs more likely to be fired By Janka Stoker and Harry Garretsen * (exechange) — December 3, 2018 — Besides being still under-represented, female CEOs have a 45 percent greater chance of being fired, according to a new study of US firms: the dismissal chances for male...
  • The role of gender By Chris Groening * (exechange) — September 1, 2019 — A recent analysis of CEO departures by exechange has revealed that female CEOs were more likely to be pushed out than their male counterparts (1). Studies provide some evidence that...
  • The Push-out Score and its relationship with stock performance By Dirk Schiereck * (exechange) — March 1, 2019 — Is the Push-out Score, indicating whether a CEO’s departure is voluntary or forced by assessing a large amount of information, significantly influenced by a firm’s stock performance prior to the CEO...
  • The shelf life of Mark Zuckerberg By Harry Garretsen and Janka Stoker * (exechange) — June 1, 2019 — Facebook is under attack. As such, this is not news because Facebook has already been criticized for its market dominance and data privacy policies. But now, the...
  • Companies seeking growth need to look hard at their top team By Jo Whitehead * (exechange) — January 2, 2019 — In our research into 10 years of corporate stumbles, in which the CEO leaves under a cloud after a significant drop in share price, we find a common feature — the...