- Push-out Score determined
- After less than two years in the position
- Praise and thanks for Hernandez
- David Constable taking over
- Hernandez spoke at length and said 134 words
(exechange) — Irving, Texas, November 2, 2020 — Carlos Hernandez, chief executive of Fluor, leaves. As announced by Fluor Corp. in a news release and in a regulatory filing published on Monday, November 2, 2020, Carlos M. Hernandez leaves his post as chief executive officer of the engineering, procurement, fabrication, construction and maintenance company after less than two years in the role, effective December 31, 2020.
Carlos Hernandez’s duties as CEO will be taken over by David E. Constable, a former chief executive officer of Sasol Limited.
Already a director
Constable is already a director of Fluor. 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, Constable understands the expectations and dynamics of the board and has knowledge of Fluor’s organization, risk-management practices and strategy.
“Long-term succession planning process”
Carlos Hernandez’s departure from the CEO post is explained as follows. Alan Boeckmann, executive chairman of the Board, said: “This leadership transition is the result of the Board’s long-term succession planning process and follows a comprehensive external search. David brings a unique combination of deep insight to Fluor and an outside perspective from his prior experience as CEO of Sasol.”
Precise information regarding Carlos Hernandez’s future plans was not immediately available.
Fluor said: “Constable succeeds Carlos Hernandez, who will retire as CEO and a member of the company’s Board at the end of the year.”
Share price decline since May 2019
The announcement follows a decline in Fluor Corp.’s share price of 71% since the beginning of Hernandez’s tenure in May 2019.
Chaired by Alan Boeckmann
Alan Boeckmann serves as Fluor Corp.’s Chairman.
In the position of CEO since 2019
Carlos Hernandez became CEO of the Company in 2019.
Through June 30, 2021, Hernandez will remain with the Corporation in a non-executive officer role serving as Special Advisor to the Chief Executive Officer and Chairman to provide transition services, including support in completing and filing the fiscal 2020 annual report on Form 10-K.
Before being named as chief executive officer, Carlos M. Hernandez was the executive vice president, chief legal officer for Fluor Corporation and served as the company’s corporate secretary.
He joined Fluor in 2007.
Prior to joining the company, Hernandez served as general counsel for ArcelorMittal Americas, a major steel producer which is part of the ArcelorMittal steel group.
Hernandez has also served as general counsel and secretary of International Steel Group (ISG), Inc. prior to its acquisition by Mittal Steel Company.
Before joining ISG, he served as executive vice president, general counsel and secretary for Fleming Companies, Inc., in Dallas.
From 1984 to 1999, Hernandez served in a number of different legal capacities including assistant general counsel for Armco Inc. a steel company, in Pittsburgh.
Early in his career, he worked as a civil engineer with HNTB.
Hernandez holds a Bachelor of Science degree in civil engineering from Purdue University and a Juris Doctor degree from the University of Miami School of Law.
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 Fluor and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 45.2020 ($).