- Push-out Score determined
- After about 53 years in the position
- Accolades and praise for Hamm
- Bill Berry taking over
- Hamm will remain as Executive Chairman at Continental Resources
- Hamm made a lengthy statement and said 230 words
(exechange) — Oklahoma City, Oklahoma, December 11, 2019 — Harold Hamm, chief executive of Continental Resources, leaves his position. As announced by Continental Resources Inc. in a news release and in a regulatory filing published on Wednesday, December 11, 2019, Harold G. Hamm leaves his post as Chief Executive Officer at the oil-and-gas company after about 53 years in the role, effective January 1, 2020.
It is the end of an era.
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.
Harold Hamm’s duties as CEO will be taken over by William B. (Bill) Berry, a former Executive Vice President, Exploration and Production of ConocoPhillips Company.
Already a director
Berry is already a director of Continental Resources. 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, Berry understands the expectations and dynamics of the board and has knowledge of Continental Resources’s organization, risk-management practices and strategy.
Harold Hamm’s move is part of a management shake-up also involving the position of Chief Operating Officer.
No reason given
In the announcement, Continental Resources did not explicitly explain the reason for Harold Hamm’s move.
Hamm will remain as Executive Chairman at Continental Resources
“Continental Resources, Inc. (NYSE-CLR) announced today that effective January 1, 2020, Founder and Chief Executive Officer, Harold Hamm will step up to the role of Executive Chairman,” Continental Resources said.
Share price decline
The announcement follows a decline in Continental Resources, Inc.’s share price of 51% since October 2018.
In the position of CEO since 1967
Harold Hamm became CEO of the Company in 1967.
Harold G. Hamm has served as Chief Executive Officer and a director since the Company’s inception in 1967 and currently serves as Chairman of the Board.
In addition, Hamm served as the Company’s President from October 31, 2008 to November 3, 2009.
He served as Chairman of the board of directors of the general partners of Hiland Partners, LP (“Hiland”) and Hiland Holdings GP, LP (“Hiland Holdings”), former affiliates of ours through February 13, 2015, which were publicly traded in the past.
From September 2005 through February 2012, Hamm served as a director of Complete Production Services, Inc., an oil and gas service company publicly traded on the NYSE.
He has served on the board of directors of the National Fish and Wildlife Foundation since October 2017.
Hamm is Chairman of Domestic Energy Producers Alliance and served as Chairman of the Oklahoma Independent Petroleum Association from June 2005 to June 2007.
He was President of the National Stripper Well Association, founder and Chairman of Save Domestic Oil, Inc., served on the board of directors of the Oklahoma Energy Explorers, Oklahoma Independent Petroleum Association and is co-chairman of the Council for a Secure America.
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 Continental Resources and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 50.2019 ($).