- Push-out Score determined
- After less than three years in the position
- Accolades, praise, thanks and good wishes for Donahoe
- Bill McDermott taking over
- Donahoe said 67 words
(exechange) — Santa Clara, California, October 22, 2019 — John Donahoe, chief executive of ServiceNow, leaves. As announced by ServiceNow Inc. in a news release on Tuesday, October 22, 2019, John J. Donahoe leaves his post as Chief Executive Officer at the cloud computing company after less than three years in the role, effective by year-end 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 7.3 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.
John Donahoe’s duties as CEO will be taken over by Bill McDermott, most recently Chief Executive Officer of SAP SE.
The fact that John Donahoe’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
John Donahoe’s departure from the CEO post is explained as follows. ServiceNow said: “McDermott will succeed John Donahoe, who is stepping down from ServiceNow to become President and Chief Executive Officer of Nike in January 2020.”
Nike is a footwear manufacturing company.
Share price increase since April 2017
The announcement follows an increase in ServiceNow, Inc.’s share price of 165% since April 2017.
Chaired by Frank Slootman
ServiceNow, Inc. is chaired by Frank Slootman.
Frank Slootman has served on the ServiceNow board of directors since May 2011 and as Chairman of the Board since October 2016.
In the position of CEO since 2017
John Donahoe became CEO of the Company in April 2017.
To ensure a smooth transition, Donahoe will remain ServiceNow’s CEO through the transition period and will retain his seat on the company’s Board of Directors for the remainder of his current term, ending in June 2020.
John J. Donahoe has served as the Company’s President and Chief Executive Officer and as a member of the Company’s Board of Directors since April 2017.
From 2008 through 2015, Donahoe served as President and Chief Executive Officer of eBay Inc. (“eBay”), a provider of, among other services, the global eBay.com online marketplace and PayPal digital payments platform.
Donahoe joined eBay in 2005 as President of eBay Marketplaces, responsible for eBay’s global e-commerce businesses, and was appointed President and Chief Executive Officer in 2008.
Prior to joining eBay, Donahoe was the Worldwide Managing Director (CEO) of Bain & Company from 1999 to 2005, and a Managing Director from 1992 to 1999.
Donahoe also serves on the board of directors of Nike, Inc. and PayPal Holdings, Inc.
Donahoe received his B.A. degree in Economics from Dartmouth College and an M.B.A. degree from the Stanford Graduate School of Business.
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 ServiceNow and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 43.2019 ($).