- Push-out Score determined
- After almost 10 years in the position
- Accolades, praise and thanks for Hodnik
- Bethany Owen taking over
- Hodnik will remain as Executive Chairman at Allete
- Hodnik said 101 words
(exechange) — Duluth, Minnesota, February 3, 2020 — Al Hodnik, chief executive of Allete, leaves his position. As announced by Allete Inc. in a news release and in a regulatory filing published on Monday, February 3, 2020, Alan R. (Al) Hodnik leaves his post as chief executive officer at the energy company after almost 10 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 7.5 years, according to data compiled by exechange.
Al Hodnik’s duties as CEO will be taken over by Bethany M. Owen, most recently President of Allete Inc.
“Thoughtful succession plan”
Al Hodnik’s departure from the CEO post is explained as follows. Heidi Jimmerson, Allete Board Lead Director, said: “Today’s announcement reflects a thoughtful succession plan by Allete directors, including the Board’s commitment to a smooth handoff, and demonstrates our immense confidence in the outstanding leadership of Bethany and Al.”
Hodnik will remain as Executive Chairman at Allete
“To support an orderly transition, Hodnik will serve as Executive Chairman of the Allete Board of Directors and will be involved actively with Owen, the Board and executive leadership until his retirement from the company and the Board in May 2021, at which time, at age 62, Hodnik will have dedicated 40 years of service to the company,” Allete said.
“Retire”
Allete said: “Owen succeeds Al Hodnik.”
Allete further said: “On January 30, 2020, the Board of Directors (the “Board”) of Allete, Inc. (“Allete” or the “Company”) elected Bethany M. Owen as Chief Executive Officer of the Company effective February 3, 2020, as part of its leadership succession process, after Alan R. Hodnik, Chairman and Chief Executive Officer of the Company, informed the Board on January 30, 2020 that he will retire as Chief Executive Officer effective February 3, 2020.”
Share price increase since May 2010
The announcement follows an increase in Allete Inc.’s share price of 132% since May 2010.
In the position of CEO since 2010
Al Hodnik became CEO of the Company in 2010.
Hodnik will continue to work closely with the Board of Directors on governance matters and with other stakeholders during the next year while continuing to oversee the company’s state and federal legislative affairs in partnership with Owen.
Hodnik will retire from the Company and the Board following Allete’s 2021 annual meeting of shareholders.
Since joining the Company in 1982, Hodnik has served in many capacities, including in organizational development and managing electric generation facilities from 1995 to 2005, with an increasing scope of leadership responsibilities.
In 2005, Hodnik was named Vice President-Generation Operations; in 2006, he became Senior Vice President of Minnesota Power Operations; and he was promoted to Chief Operating Officer in 2007, assuming responsibility for subsidiaries, SWL&P and BNI Energy, at that time.
Hodnik was elected President of Allete in May 2009, serving in that role until January 2019.
He was elected CEO in May 2010 and Chairman in May 2011.
Hodnik is a director for PolyMet Mining Corp. (NYSE-A: PLM; TSX: POM) and serves as the chair of its compensation committee.
In 2017 and 2018, he served as president of the Association of Edison Illuminating Companies, an operations-focused electric industry trade association.
Hodnik is also a director of Essentia Health System, where he is a member of its physician compensation, finance, and executive committees.
Hodnik served as the elected mayor of the City of Aurora, Minnesota from 1988 to 1997.
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 Allete and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 6.2020 ($).