- Push-out Score determined
- After less than three years in the position
- Praise, thanks and good wishes for Roessner
- Mike Pizzi taking over
- Roessner said 130 words
(exechange) — New York, August 14, 2019 — Karl Roessner, chief executive of E*Trade, leaves. As announced by E*Trade Financial Corp. in a news release and in a regulatory filing published on Wednesday, August 14, 2019, Karl A. Roessner leaves his post as Chief Executive Officer at the financial services company after less than three 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 announced their departure over the past 12 months was 7.3 years, according to data compiled by exechange. On an accumulated basis, around 24% of the CEOs who announced their departure over the past 12 months left their posts within three years.
Karl Roessner’s duties as CEO will be taken over by Michael A. (Mike) Pizzi, most recently Chief Operating Officer of E*Trade Financial Corporation.
“Achieve its next leg of growth”
A reason for Karl Roessner’s departure from the CEO post was not explicitly provided. Roessner said: “With our fantastic team and Mike Pizzi at the helm, E*Trade could not be in a better place to achieve its next leg of growth, which affords me the opportunity to hand over the baton.”
Precise information regarding Karl Roessner’s future plans was not immediately available.
“Leave/departure”
E*Trade said: “Chief Operating Officer Michael A. Pizzi will assume the Chief Executive Officer role after Karl Roessner advised the Company of his decision to leave, following 10 years of service.”
E*Trade further said: “On August 14, 2019, E*Trade Financial Corporation (the “Company”) announced (i) Karl A. Roessner’s departure from his position as the Company’s Chief Executive Officer and as a member of the Company’s Board of Directors (the “Board”) and (ii) Michael A. Pizzi’s appointment as the Company’s Chief Executive Officer and member of the Board, as well as President and member of the board of directors of E*Trade Bank.”
Share price decline
The announcement follows a decline in E*Trade Financial Corporation’s share price of 31% since July 2018.
Chaired by Rodger A. Lawson
E*Trade Financial Corporation is chaired by Rodger A. Lawson.
Rodger A. Lawson has served as a director of the Company since February 2012, and as Chairman since May 2013.
In the position of CEO since 2016
Karl Roessner became CEO of the Company in September 2016.
The appointment of Pizzi is effective immediately, while Roessner has agreed to serve in an advisory capacity through year end to assist with the transition.
Karl A. Roessner has been a director of the Company and the Chief Executive Officer since September 2016.
Prior to his appointment as Chief Executive Officer, Roessner served as Executive Vice President and General Counsel for the Company for more than seven years, overseeing all compliance and regulatory functions for the Company and its bank and brokerage subsidiaries.
During that time, he also served as the Corporate Secretary to the Company’s Board of Directors. Prior to joining the Company in 2009, Roessner was a partner in the Corporate Practice group of Clifford Chance US LLP, one of the world’s leading law firms.
There, he advised clients on negotiated public and private transactions, management and leveraged buyouts, capital raising activities, and corporate governance matters.
Roessner earned his B.A. cum laude from Siena College and his J.D. cum laude from St. John’s University School of Law, where he was a member of the St. John’s University Law Review.
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 E*Trade and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 33.2019 ($).