- Push-out Score determined
- After about six years in the position
- Praise and thanks for Jones
- Mike Ranger taking over
(exechange) — Morristown, New Jersey, October 29, 2020 — Steve Jones, chief executive of Covanta, leaves. As announced by Covanta Holding Corp. in a news release and in a regulatory filing published on Thursday, October 29, 2020, Stephen J. (Steve) Jones leaves his post as chief executive officer of the provider of energy-from-waste and industrial waste management services after about six years in the role, effective immediately.
Steve Jones’s duties as CEO will be taken over by Michael W. (Mike) Ranger, most recently co-founder and senior managing director of Diamond Castle Holdings, LLC.
Already a director
Ranger is already a director of Covanta. 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. 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, Ranger understands the expectations and dynamics of the board and has knowledge of Covanta’s organization, risk-management practices and strategy.
Steve Jones’s move forms part of a management shake-up also involving the position of Chief Operating Officer.
“Strategic review”
Covanta did not give an explicit reason for Steve Jones’s departure from the CEO post, leaving room for speculation. Covanta said: “Covanta Holding Corporation (NYSE: CVA) (the “Company” or “Covanta”) today announced the launch of a comprehensive strategic review of the Company’s operations, growth priorities, and capital structure. The board of directors has appointed Michael Ranger as President and Chief Executive Officer to lead this review and its subsequent execution.”
Precise information regarding Steve Jones’s future plans was not immediately available.
“Stepping down”
Covanta said: “Mr. Ranger succeeds Stephen Jones, who is stepping down from his roles at Covanta.”
Covanta further said: “Stephen J. Jones has stepped down as the Chief Executive Officer of Covanta Holding Corporation (together with its subsidiaries, the “Company”) and resigned as a member of the Board of Directors of the Company, effective as of October 29, 2020.”
Share price decline since October 2019
The announcement follows a decline in Covanta Holding Corp.’s share price of 56% since October 2019.
In the position of CEO since 2015
Steve Jones became CEO of the Company in 2015.
Stephen J. Jones was appointed the Company’s President and Chief Executive Officer and elected as a director in March, 2015.
Prior to joining Covanta, Jones was employed by Air Products and Chemicals, Inc. (“Air Products”), a global supplier of industrial gases, equipment and services from 1992 through September 2014.
Jones served as senior vice president and general manager, Tonnage Gases, Equipment and Energy of Air Products, from April 2009 through September 2014.
Jones also served as Air Products’ China President from June 2011 through September 2014 at Air Products’ office in Shanghai.
He was also a member of Air Products’ Corporate Executive Committee from 2007 through September 2014.
Jones joined Air Products in 1992 as an attorney in the Law Group representing various business areas and functions and in 2007 he was appointed senior vice president, general counsel and secretary.
Jones also serves on the Board of Bloomsburg University Foundation and Tronox Holdings Plc, a publicly-traded vertically integrated mining and inorganic chemicals business.
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 Covanta and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 44.2020 ($).