- Push-out Score determined
- After less than two years in the position
- Praise and thanks for Halkyard
- Bruce Haase taking over
(exechange) — Charlotte, North Carolina, November 22, 2019 — Jonathan Halkyard, chief executive of Extended Stay America, leaves. As announced by Extended Stay America Inc. in a news release and in a regulatory filing published on Friday, November 22, 2019, Jonathan S. Halkyard has left his post as Chief Executive Officer at the hospitality company after less than two years in the role, effective November 21, 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 7.4 years, according to data compiled by exechange. On an accumulated basis, around 14% of the CEOs who announced their departure over the past 12 months left their posts within two years, and 25% left their posts within three years.
Jonathan Halkyard’s duties as CEO will be taken over by Bruce N. Haase, currently Chairman of the Board and Majority Shareholder of HomeWell Care Services.
No reason given
In the announcement, Extended Stay America did not explicitly explain the reason for Jonathan Halkyard’s move.
Precise information regarding Jonathan Halkyard’s future plans was not immediately available.
Extended Stay America said: “Haase has been elected to serve as a director of Extended Stay America, Inc. and will continue to serve as a director of ESH Hospitality, Inc. He succeeds Jonathan Halkyard, who will continue to advise the Company through February 25, 2020.”
Extended Stay America further said: “On November 21, 2019, Jonathan Halkyard entered into a Letter Agreement with each of Extended Stay America, Inc. (“Extended Stay”) and ESH Hospitality, Inc. (“ESH REIT”) dated November 21, 2019 (the “Letter Agreement”) pursuant to which Mr. Halkyard resigned as President and Chief Executive Officer (“CEO”) and as a director of each of Extended Stay and ESH REIT, effective as of November 21, 2019.”
“Did not involve any disagreement”
“Mr. Halkyard’s resignations did not involve any disagreement with either of Extended Stay or ESH REIT,” Extended Stay America said.
Share price decline
The announcement follows a decline in Extended Stay America, Inc.’s share price of 20% since March 2019.
Chaired by Douglas Geoga
Extended Stay America, Inc. is chaired by Douglas Geoga.
Geoga has served as Chair of the Board of the Corporation since July 2013 and as Chair of the Board of Directors of ESH REIT since November 2013.
In the position of CEO since 2018
Jonathan Halkyard became CEO of the Company in January 2018.
Halkyard has served as President and Chief Executive Officer of the Corporation and of ESH REIT since January 2018.
Halkyard previously served as Chief Financial Officer of the Corporation and ESH REIT from January 2015 to December 2017, as Chief Operating Officer of the Corporation from October 2013 to December 2014, and as the Interim Chief Financial Officer of the Corporation and ESH REIT from July 2014 to December 2014.
From July 2012 to September 2013, Halkyard served as Executive Vice President and Chief Financial Officer of NV Energy, Inc., a holding company providing energy services and products in Nevada, and its wholly-owned subsidiaries, Nevada Power Company and Sierra Pacific Power Company.
From March 1999 to May 2012, Halkyard held various positions with Caesars Entertainment Corporation (formerly known as Harrah’s Entertainment, Inc.), including Vice President (from 2002 to 2005), Treasurer (from 2003 to 2010), Senior Vice President (from 2005 to 2010), Executive Vice President (from 2010 to 2012) and Chief Financial Officer (from 2006 to 2012).
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 Extended Stay America and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 47.2019 ($).