- Push-out Score determined
- After almost eight years in the position
- Praise and thanks for Herbert
- Don Layden taking over in the interim
- Search for a successor
- Herbert said 73 words
(exechange) — Malvern, Pennsylvania, October 18, 2019 — Steve Herbert, chief executive of USA Technologies, leaves. As announced by USA Technologies Inc. in a news release published on Thursday, October 17, 2019 and in a regulatory filing published on Friday, October 18, 2019, Stephen P. (Steve) Herbert leaves his post as Chief Executive Officer at the company that focuses on cashless and mobile transactions after almost eight 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 7.2 years, according to data compiled by exechange.
The announcement of Steve Herbert’s move comes 10 months after Albin Moschner took over as Chairman of USA Technologies, Inc.
USA Technologies will undertake a search for a successor.
Steve Herbert’s duties as CEO will be taken over in the interim by Donald W. (Don) Layden, currently Venture Partner of Baird Capital Partners, as Interim Chief Executive Officer.
Already a director
Layden is already a director of USA Technologies. 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, Layden understands the expectations and dynamics of the board and has knowledge of USA Technologies’s organization, risk-management practices and strategy.
“The time was right”
Steve Herbert’s departure from the CEO post is explained as follows. Albin Moschner, Chairman of the USAT Board, said: “With our financial disclosures now up to date, and with a strong foundation in place from which we can grow our business, Steve determined that the time was right for a change in management.”
Precise information regarding Steve Herbert’s future plans was not immediately available.
USA Technologies said: “Mr. Layden’s appointment follows Stephen Herbert’s decision to step down as Chief Executive Officer and a director of the Company.”
USA Technologies further said: “Effective October 17, 2019, Stephen P. Herbert resigned as Chief Executive Officer (“CEO”) of USA Technologies, Inc. (the “Company”) and as a member of the Company’s Board of Directors.”
Share price decline
The announcement follows a decline in USA Technologies, Inc.’s share price of 54% since September 2018.
Chaired by Albin Moschner
USA Technologies, Inc. is chaired by Albin Moschner.
Moschner joined the Board of Directors in May 2012 and became Chairman of the Board in January 2019. Most recently, he served as chief operating officer of Leap Wireless International where he was responsible for all operating activities of the company, including financial performance and customer acquisition.
In the position of CEO since 2011
Steve Herbert became CEO of the Company in November 2011.
Stephen P. Herbert has been the Company’s Chief Executive Officer since November 30, 2011, and served as the Company’s Chairman of the Board from November 30, 2011 until January 13, 2019.
He was elected a director in April 1996, and joined the Company on a full-time basis on May 6, 1996 as Executive Vice President.
During August 1999, Herbert was appointed President and Chief Operating Officer of the Company.
On October 5, 2011, Herbert was appointed as interim Chief Executive Officer and Chairman, and on November 30, 2011, he was appointed as the Chairman of the Board of Directors and Chief Executive Officer of the Company.
Prior to joining the Company and since 1986, Herbert had been employed by Pepsi-Cola, the beverage division of PepsiCo, Inc.
From 1994 to April 1996, Herbert was a Manager of Market Strategy at Pepsi-Cola.
In such position, he was responsible for directing development of market strategy for the vending channel, and subsequently, the supermarket channel for Pepsi-Cola in North America.
Prior thereto, Herbert held various sales and management positions with Pepsi-Cola.
Herbert graduated with a Bachelor of Science degree from Louisiana State University.
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.
Read the full story in the exechange report 42.2019 ($).