- Push-out Score determined
- After less than two and a half years in the position
- Mark Adams taking over
- Shah will remain as Executive Chairman at Smart
- Shah said 73 words
(exechange) — Newark, California, August 13, 2020 — Ajay Shah, chief executive of Smart, leaves his position. As announced by Smart Global Holdings Inc. in a news release and in a regulatory filing published on Thursday, August 13, 2020, Ajay B. Shah leaves his post as chief executive officer at the manufacturer of electronic products focused on memory and computing technology areas after less than two and a half years in the role, effective August 31, 2020.
Ajay Shah’s duties as CEO will be taken over by Mark W. Adams, most recently Chief Executive Officer of Lumileds, Inc.
The fact that Ajay Shah’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
No reason given
In the announcement, Smart did not explicitly explain the reason for Ajay Shah’s move.
Shah will remain as Executive Chairman at Smart
“Ajay Shah, Smart’s current President and CEO, will continue to lead the Board as the Executive Chairman,” Smart said.
Smart said: “On August 13, 2020, Smart Global Holdings, Inc. (“SGH” or the “Company”) announced that, on August 12, 2020, the Board of Directors of the Company (the “Board”) approved the appointment of Mark Adams to serve as the President and Chief Executive Officer (“CEO”) of the Company, effective August 31, 2020. At that time, Ajay Shah will step down as the President and CEO of the Company, but he will continue to lead the Board as its Executive Chairman.”
“Not the result any disagreement”
“Mr. Shah’s decision to resign as President and CEO came after he assisted the Board in selecting and recruiting Mr. Adams as his successor, and is not the result any disagreement with the Company or the Board. It is anticipated that, as soon as practicable after Mr. Adams assumes his duties as President and CEO, the Company will also appoint him, or nominate him for election, to the Board,” Smart said.
Share price increase since August 2017
The announcement follows an increase in Smart Global Holdings Inc.’s share price of 53% since August 2017.
In the position of CEO since 2018
Ajay Shah became CEO of the Company in 2018.
Ajay Shah has served as director and Chairman of the Board of Smart Global Holdings, Inc. since its inception in 2011 when it acquired substantially all of the equity interests of Smart Worldwide Holdings, Inc., a predecessor entity and now subsidiary of Smart Global Holdings.
Shah also served as a Chairman of Smart Worldwide Holdings since its spin-off from Solectron in April 2004.
In November 2017, Shah assumed the role of Executive Chairman, became Co-CEO in March 2018 and then President and Chief Executive Officer of Smart Global Holdings in June 2018.
Shah joined Silver Lake, a global investment firm, in 2007, and is the co-founder and Managing Partner of the firm’s middle market strategy, Silver Lake Sumeru.
Since 2014, Shah has also served as a Senior Operating Partner of Sumeru Equity Partners, a middle-market private equity firm. Previously, he founded Shah Capital Partners, a private equity firm.
Shah co-founded Smart Modular in 1988 and served as Chairman of the board of directors and Chief Executive Officer through Smart Modular’s initial public offering in 1995 and until 1999, when it was acquired by Solectron.
Shah founded and managed the Technology Solutions Business unit of Solectron from 1999 to 2002.
Shah currently serves on the boards of directors of a number of private technology companies including Opera Solutions, LLC and Velocity Technology Solutions, Inc. Shah previously served on the boards of directors of Magellan Navigation, Inc., AVI-SPL, Inc., CMAC MicroTechnology, Flex, Ingenient Technologies Inc., Northern California Public Broadcasting, Power-One, Inc., PulseCore Semiconductor, Spansion Inc. and TES Electronic Solutions.
He is a senior fellow of the American Leadership Forum, serves on the boards of National Audubon Society and The Indian School of Business, India and is a Trustee of the America India Foundation.
Shah has a B.S. in Engineering from the University of Baroda, India and an M.S. degree in Engineering Management from Stanford University.
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.
Read the full story in the exechange report 33.2020 ($).