- After 11 years in the position
- Todd Magazine taking over
- Rollins will remain as Executive Chairman at AirSculpt
- Rollins kept it short and said 48 words
(exechange) — Miami Beach, Florida, January 6, 2023 — Aaron Rollins, chief executive of AirSculpt, leaves his position. As announced by AirSculpt Technologies Inc. in a news release and in a regulatory filing published on Friday, January 6, 2023, Aaron Rollins leaves his post as chief executive officer at the provider of body contouring procedures, after 11 years in the role, effective January 30, 2023.
The average tenure of CEOs who announced their departure over the past 12 months was 8.3 years. Around 30% of CEOs left their posts after more than 10 years. This is according to data collected by CEO-exit research firm exechange.
exechange tracks CEO departures at the 3,000 largest publicly traded companies in the U.S., examines the reasons CEOs leave and determines the Push‑out Score™, a measure of pressure on departing chief executives on a scale of 0 to 10.
Aaron Rollins’s duties as CEO will be taken over by Todd Magazine, most recently executive vice president, new businesses and chief executive officer and president of the Blink Fitness unit at Equinox.
The fact that Aaron Rollins’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
In general, an outsider does not have the constraints of an insider when it comes to leading painful changes or making unpopular decisions.
Aaron Rollins’s move coincides with a management shake-up also involving the position of Chief Operating Officer and President.
“Increase growth”
AirSculpt did not give an explicit reason for Aaron Rollins’s departure from the CEO post. Magazine said: “There is a tremendous opportunity to increase growth by leveraging AirSculpt’s proprietary technology and premium experience, as well as by building awareness of the brand.”
The top three reasons cited in corporate announcements for CEO departures over the past 12 months are performance issues (26.1% of cases), implementation of a planned succession (16.5%) and the statement that the time was right for a change (8.4%), according to exechange data. Other motives given for leadership changes included the outgoing CEO’s wish to pursue other opportunities (6% of cases), personal reasons (3%) and conduct issues (2.4%). Rather rarely stated reasons are health problems (2.1% of cases), career change (2.1%), the desire for more time with family (0.9%), death (0.9%) and disagreement (0.6%). Sometimes, more than one reason was given. In 30.9% of cases, no reason was given.
Rollins will remain as Executive Chairman at AirSculpt
AirSculpt stated: “AirSculpt Founder and current Chief Executive Officer, Dr. Aaron Rollins, will become Executive Chairman of the Board of Directors. Dr. Rollins will be primarily focused on leading the Company’s overall vision and providing strategic guidance. ”
Share price decline since January 2022
The announcement follows a decline in AirSculpt Technologies Inc.’s share price of 76% since January 2022.
In the position of CEO since 2012
Aaron Rollins became CEO of the Company in 2012.
Aaron Rollins is the Company’s founder and has served as Chief Executive Officer since 2012.
Rollins is the founder of Elite Body Sculpture.
He currently serves as a board adviser to Safecor Health, a portfolio company affiliated with the Company’s Sponsor.
Rollins is considered a specialist in body sculpting and has performed thousands of laser liposuction procedures.
He is a life-long art lover who studied sculpture and to fulfill his dream of combining art and science, he eventually attended medical school.
Rollins went to medical school at the McGill University Faculty of Medicine in Montreal, Canada after completing his undergraduate studies at McGill University.
He has received many awards for his distinguished work, including the I.D.E.A. Bronze Medal for medical inventions and the “Great Distinction” honor at McGill University.
He is affiliated with the American College of Surgeons, American Board of Laser Surgery, American Academy of Cosmetic Surgery and the American Society of Liposuction Surgery.
He is also a member of the World Academy of Cosmetic Surgery.
Rollins was awarded the Compassionate Doctor certification in 2013.
48 words by Aaron Rollins
In the announcement of the leadership change, Aaron Rollins kept it short and said 48 words.
“Scaling our business”
Aaron Rollins stated: “I am thrilled to announce the addition of Todd to our team. He is a seasoned strategic leader and brings a wealth of experience to guide our team in scaling our business both domestically and internationally. Our complementary skillsets bring a new level of excellence to the company.”
Over the past 12 months, 26% of all outgoing CEOs remained silent in the departure announcement, according to data compiled by exechange. Departing CEOs who did make a statement said an average of 109 words. The longest statement was 382 words. The shortest statement was 23 words. Leadership transitions in which departing CEOs provide conspicuously short, excessively long or no explanations for their move are statistically associated with elevated pressure and show an increased incidence of Push-out Scores above the critical threshold of 5.
33% of CEOs are forced out or fired
When CEO departures are announced, exechange determines the Push-out Score on a scale of 0 to 10 to assess how likely it is that the chief executive was pushed out or felt pressure to leave the position, with 0 being most likely a voluntary move and 10 being most likely a forced exit. Anything over a 5 indicates that there are valid reasons to believe an executive may have been pushed out.
Of the 333 CEO departures in the Russell 3000 Index evaluated over the past 12 months (January 6, 2022, to January 5, 2023), the average Push-out Score was 5.7, according to exechange data. References to conduct issues, disagreements and irregularities lead to the highest Push-out Scores. When performance issues, time with family or other opportunities were cited as departure reasons, the average Push-out Scores were also significantly elevated.
Around 33% of the CEO departure events from the past 12 months received Push-out Scores of 8 or higher.
In other words, in the past 12 months, three in 10 departing CEOs were forced out or fired.
Pressure in the health care sector well above the critical threshold
Some industries are under generally higher pressure than others, and CEOs are feeling the strain. In the past 12 months, the communication, consumer staples and health care sectors showed the highest average Push-out Scores. By contrast, pressure on CEOs was lowest in the real estate, utilities and financials sectors, as measured by average Push-out Scores.
In the health care sector, which includes AirSculpt Technologies Inc., the average Push-out Score over the past 12 months was 6.9, which is well above the critical threshold of 5.
In the health care sector, 26 exiting CEOs received Push-out Scores of 8 or higher over the past 12 months, indicating that they were most likely forced out or faced strong pressure to step down.
Push-out Score for Aaron Rollins’s move determined
The Push-out Score regarding Aaron Rollins’s move is explained point by point in the exechange report.
exechange reached out to AirSculpt and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 2.2023 ($).