- Push-out Score determined
- After about six years in the position
- Praise and thanks for Workman
- Dick Alario taking over in the interim
- Search for a successor
(exechange) — Houston, Texas, November 4, 2019 — Robert Workman, chief executive of Now Inc., leaves. As announced by Now Inc. in a news release published on Friday, November 1, 2019 and in a regulatory filing published on Monday, November 4, 2019, Robert Workman leaves his post as Chief Executive Officer at the distributor to the oil and gas and industrial markets after about six 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 7.4 years, according to data compiled by exechange.
Now Inc. will undertake a search for a successor.
Robert Workman’s duties as CEO will be taken over in the interim by Richard (Dick) Alario, most recently Chief Executive Officer of Key Energy Services, Inc., as interim Chief Executive Officer.
Already a director
Alario is already a director of Now Inc. 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, Alario understands the expectations and dynamics of the board and has knowledge of Now Inc.’s organization, risk-management practices and strategy.
“There is ample runway for DistributionNow to advance its market position”
A reason for Robert Workman’s departure from the CEO post was not explicitly provided. Alario said: “The Board and I recognize that there is ample runway for DistributionNow to advance its market position and generate incremental value for our employees, customers and shareholders.”
Precise information regarding Robert Workman’s future plans was not immediately available.
“Replacing”
Now Inc. said: “Now Inc. (NYSE: DNow) (or the “Company” or “DistributionNow”) today announced that its Board of Directors has appointed Dick Alario as interim CEO, replacing Robert Workman, effective immediately. Mr. Workman will no longer serve on the Company’s Board of Directors.”
Now Inc. further said: “On November 1, 2019, the Board of Directors (the “Board”) of Now Inc. (the “Company”) appointed Richard Alario, a member of the Board, to serve as the Company’s interim Chief Executive Officer, replacing Robert Workman, effective immediately.”
“Not a result of any disagreement”
“The resignation is not a result of any disagreement that the Company believes caused, in whole or in part, Mr. Workman’s resignation,” Now Inc. said.
Share price decline
The announcement follows a decline in Now Inc.’s share price of 62% since November 2014.
Chaired by Wayne Richards
Now Inc. is chaired by Wayne Richards.
Richards has been a director of the Company since May 2014, and has served as the Company’s Chairman of the Board since August 2017.
In the position of CEO since 2014
Robert Workman became CEO of the Company in February 2014.
Workman has been a director of the Company since May 2014.
Workman was elected President and Chief Executive Officer of the Company in February 2014.
Workman served as National Oilwell Varco’s President – Distribution Services from January 2001 until the Company’s spin-off in May 2014.
He previously served National Oilwell Varco starting in 1991 in various managerial positions with the distribution business group.
He also previously served as the Chairman of the Petroleum Equipment Suppliers Association.
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 Now Inc. and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 45.2019 ($).