- Push-out Score determined
- After about five and a half years in the position
- Thanks and good wishes for Timken
- Terry Dunlap taking over in the interim
- Timken said 99 words
(exechange) — Canton, Ohio, October 9, 2019 — Tim Timken, chief executive of TimkenSteel, leaves. As announced by TimkenSteel Corp. in a news release and in a regulatory filing published on Wednesday, October 9, 2019, Ward J. (Tim) Timken has left his post as Chief Executive Officer at the provider of customized alloy steel products and services after about five and a half years in the role, effective October 8, 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 announced their departure over the past 12 months was 7.2 years, according to data compiled by exechange.
Tim Timken’s duties as CEO will be taken over in the interim by Terry L. Dunlap, a former executive vice president of the flat-rolled products group of Allegheny Technologies Inc., as interim Chief Executive Officer.
Already a director
Dunlap is already a director of TimkenSteel. Generally speaking, most director-turned-CEO appointments occur following a sudden resignation of the outgoing CEO and signal a lack of preparedness on the company’s part to groom internal talent. 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, Dunlap understands the expectations and dynamics of the board and has knowledge of TimkenSteel’s organization, risk-management practices and strategy.
“To revitalize both the near-term performance and long-term potential”
Tim Timken’s departure from the CEO post is explained as follows. Tim Timken said: “In an effort to revitalize both the near-term performance and long-term potential of TimkenSteel, now is the time for new leadership at the Company.”
Precise information regarding Tim Timken’s future plans was not immediately available.
TimkenSteel said: “Ward J. “Tim” Timken, Jr. has stepped down as Chief Executive Officer and President and as Chairman of the TimkenSteel Board of Directors.”
TimkenSteel further said: “On October 8, 2019, Ward J. Timken, Jr. stepped down as Chief Executive Officer and President of TimkenSteel Corporation (the “Company”) and as Chairman of the Company’s Board of Directors (the “Board”), effective immediately.”
Share price decline
The announcement follows a decline in TimkenSteel Corporation’s share price of 60% since October 2018.
In the position of CEO since 2014
Tim Timken became CEO of the Company in June 2014.
Timken was Chairman, Chief Executive Officer and President of TimkenSteel Corporation, a role he assumed upon the spinoff of TimkenSteel from The Timken Company in June 2014.
Prior to being named to his role, Timken served as a director of The Timken Company beginning in 2002 (a position which he still holds) and as chairman of the board of directors of The Timken Company from 2005 until mid-2014.
Previously, Timken was President of The Timken Company’s steel business from 2004 to 2005 and Corporate Vice President of The Timken Company from 2000 to 2003, and he held key leadership positions in The Timken Company’s European and Latin American businesses from 1992 to 2000.
Prior to joining The Timken Company, Timken opened and managed the Washington, D.C., office of McGough & Associates, a Columbus, Ohio-based government affairs consulting firm.
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 TimkenSteel and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 41.2019 ($).