- Push-out Score determined
- After about four and a half years in the position
- Duncan Bates taking over
- Shipley will remain as Executive Vice President at Legacy Housing
(exechange) — Bedford, Texas, June 8, 2022 — Kenny Shipley, chief executive of Legacy Housing, leaves his position. As announced by Legacy Housing Corp. in a news release on Wednesday, June 8, 2022, Kenneth E. (Kenny) Shipley has left his post as chief executive officer at the provider of manufactured homes and “tiny houses,” after about four and a half years in the role, effective June 7, 2022.
Kenny Shipley’s duties as CEO will be taken over by Robert D. Bates, most recently Senior Vice President, Mergers & Acquisitions at Arcosa, Inc.
It is a generational change. Duncan Bates is about 28 years younger than Kenny Shipley.
Already a director
Bates is already a director of Legacy Housing. 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, Bates understands the expectations and dynamics of the board and has knowledge of Legacy Housing’s organization, risk-management practices and strategy.
No reason given
In the announcement, Legacy Housing did not explicitly explain the reason for the move.
Shipley will remain as Executive Vice President at Legacy Housing
“Mr. Bates replaces Kenny Shipley, who, as part of the management reorganization, will remain with Legacy as Founder and Executive Vice President. Mr. Shipley will also remain a member of the Company’s Board of Directors (the “Board”),” Legacy Housing said.
Legacy Housing said: “Mr. Bates resigned from the Company’s Board effective June 7, 2022. Effective June 7, 2022, Francisco Coll was appointed to the Company’s Board as an Independent Director and will also serve on the Audit Committee.”
Share price decline since January 2022
The announcement follows a decline in Legacy Housing Corp.’s share price of 38% since January 2022.
In the position of CEO since 2018
Kenny Shipley became CEO of the Company in 2018.
Kenneth E. Shipley co-founded the Company in 2005 with Curtis D. Hodgson.
Shipley was the Company’s Co-Chief Executive Officer from January 2018 and, since February 2019, has served as the Company’s President and sole Chief Executive Officer.
He has been a member of the Company’s Board of Directors since January 2018, when the Company converted to a corporation and prior to that, Shipley, together with Hodgson, served as partners of the company’s predecessor, Legacy Housing, Ltd.
Shipley has more than 30 years of experience in the manufactured home industry.
Since 1981, he has also owned and operated Bell Mobile Homes in Lubbock, Texas, a manufactured home retailer.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding Kenny Shipley’s move on a scale of 0 to 10.
exechange reached out to Legacy Housing and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 24.2022 ($).