- Push-out Score determined
- After less than two and a half years in the position
- Praise and thanks for Lawrie
- Mike Salvino taking over
- Lawrie said 84 words
(exechange) — Tysons, Virginia, September 11, 2019 — Mike Lawrie, chief executive of DXC, leaves. As announced by DXC Technology Co. in a news release on Wednesday, September 11, 2019, J.Michael (Mike) Lawrie leaves his post as Chief Executive Officer at the IT outsourcing giant after less than two 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 announced their departure over the past 12 months was 7.3 years, according to data compiled by exechange. On an accumulated basis, around 25% of the CEOs who announced their departure over the past 12 months left their posts within three years.
Mike Lawrie’s duties as CEO will be taken over by Michael J. (Mike) Salvino, most recently managing director of Carrick Capital Partners.
Already a director
Salvino is already a director of DXC. 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, Salvino understands the expectations and dynamics of the board and has knowledge of DXC’s organization, risk-management practices and strategy.
“Planned retirement”
Mike Lawrie’s departure from the CEO post is explained as follows. DXC said: “Lawrie and the DXC board began discussing succession and planned retirement about a year ago. With his support, the board began a process to identify and recruit his successor.”
Precise information regarding Mike Lawrie’s future plans was not immediately available.
“Retirement”
DXC said: “Lawrie has announced his retirement as President and CEO and will retire as DXC’s board chair on Dec. 31, 2019.”
Share price decline
The announcement follows a decline in DXC Technology Company’s share price of 60% since October 2018.
In the position of CEO since 2017
Mike Lawrie became CEO of the Company in April 2017.
Mike Lawrie has served as DXC’s Chairman, President and Chief Executive Officer since the company’s formation in 2017.
Lawrie has served as the Company’s President and Chief Executive Officer and Chairman of the Company’s Board since April 1, 2017.
Lawrie joined Computer Sciences Corporation (CSC) as President and Chief Executive Officer on March 19, 2012 and as a member of its Board of Directors in February 2012.
Lawrie served as chairman of the CSC Board of Directors from December 15, 2015 until consummation of the Merger on April 1, 2017.
Prior to joining CSC, he served as the Chief Executive Officer of U.K.-based Misys plc, a leading global IT solutions provider to the financial services industry, from November 2006 to March 2012.
Lawrie also served as the Executive Chairman of Allscripts-Misys Healthcare Solutions, Inc., from October 2008 to August 2010.
From 2005 to 2006, Lawrie was a general partner with ValueAct Capital, a San Francisco-based private investment firm.
He also served as Chief Executive Officer of Siebel Systems, Inc., an international software and solutions company, from 2004 to 2005.
Lawrie also spent 27 years with IBM where he rose to Senior Vice President and Group Executive, responsible for sales and distribution of all IBM products and services worldwide.
From 1998 to 2001, Lawrie was General Manager for IBM’s business in Europe, the Middle East and Africa, which included operations in 124 countries and 90,000 employees.
Prior to that, Lawrie served as General Manager of Industries for IBM’s business operations in Asia Pacific, based in Tokyo.
Lawrie is a Trustee of Drexel University, Philadelphia and Chairman of the Board of Directors of Perspecta Inc.
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 DXC and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 37.2019 ($).