- After about six and a half years in the position
- Praise and thanks for Masterman
- Jim Abrahamson taking over temporarily
- Search for a successor
- Masterman kept it short and said 55 words
(exechange) — Blue Bell, Pennsylvania, May 4, 2023 — Andrew Masterman, chief executive of BrightView, leaves his position — as “mutually agreed.” As announced by BrightView Holdings Inc. in a news release and in a regulatory filing published on Thursday, May 4, 2023, Andrew V. Masterman leaves his post as chief executive officer at the commercial landscaping services company, after about six and a half years in the role, effective May 31, 2023.
BrightView will undertake a search for a successor.
Andrew Masterman’s duties as CEO will be taken over temporarily by James R. (Jim) Abrahamson, a former chief executive officer at Interstate Hotels & Resorts, as interim Chief Executive Officer.
Already a director
Abrahamson has already been a member of the board of directors of BrightView. 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, Abrahamson understands the expectations and dynamics of the board and has knowledge of BrightView’s organization, risk-management practices and strategy.
“Enhance service for customers”
BrightView did not give an explicit reason for Andrew Masterman’s departure from the CEO post. Paul Raether, chairman of BrightView’s Board of Directors, stated: “Today, BrightView is the leading commercial landscape design and services company with a recognized brand and high-quality team. Its market-leading position provides a solid foundation for future growth and creates a unique opportunity to enhance service for customers.”
Precise information regarding Andrew Masterman’s future plans was not immediately available.
“Step down/resign”
BrightView said: “Andrew Masterman will step down from his role as President and Chief Executive Officer (CEO) and member of the Board of Directors, effective May 31, 2023.”
BrightView further said: “On May 4, 2023, BrightView Holdings, Inc. … announced that the Board of Directors of the Company … and Andrew V. Masterman had mutually agreed that Mr. Masterman would resign from his position as President and Chief Executive Officer of the Company and resign as a member of the Board, effective as of the close of business on May 31, 2023.”
Share price decline since July 2018
The announcement follows a decline in BrightView Holdings Inc.’s share price of 76% since July 2018.
In the position of CEO since 2016
Andrew Masterman became CEO of the Company in 2016.
Masterman will serve as an advisor for one month to ensure a smooth transition.
Andrew V. Masterman has served as President and CEO of the Company since December 2016 and has been a member of the Board since December 2016.
Prior to joining the Company, Masterman served as Executive Vice President at Precision Castparts Corporation, a Berkshire Hathaway company that specializes in manufacturing structural investment castings, forged components, and airfoil castings for aircraft engines and industrial gas turbines, from April 2012 to November 2016.
At Precision Castparts Corporation, Masterman also served as President of the Wyman Gordon and Structural Casting divisions.
Prior to Precision Castparts Corporation, he was President and CEO of North America for ESAB Group, Inc., a leader in welding and cutting equipment and consumables, from August 2009 to April 2012.
Masterman earned a Bachelor of Arts degree with distinction in Political Science from Colorado College and advanced degrees in Engineering, Japanese and Business Administration from the University of Michigan.
55 words by Andrew Masterman
In the news release announcing his departure as CEO of BrightView Holdings Inc., Andrew Masterman received praise and thanks.
In announcing his departure, Andrew Masterman kept it short and said 55 words.
“I look forward to working with Jim”
Andrew Masterman stated: “It has been an honor to serve as BrightView’s CEO and I’m proud of what the team has accomplished during my tenure. Together, we’ve built a top-tier organization with an expansive national footprint. I look forward to working with Jim to ensure a smooth transition and will continue to watch BrightView’s progress and future success.”
40% 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 314 CEO departures in the Russell 3000 Index evaluated over the past 12 months (May 4, 2022, to May 3, 2023), the average Push-out Score was 6.2, according to exechange data. References to conduct issues, disagreements and irregularities lead to the highest Push-out Scores. When performance issues, pursuit of other opportunities or time with family were cited as departure reasons, the average Push-out Scores were also significantly elevated.
Around 40% 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, two in five departing CEOs were forced out or fired.
Push-out Score for Andrew Masterman’s move determined
The Push-out Score regarding Andrew Masterman’s move is explained point by point in the exechange report.
exechange reached out to BrightView and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 19.2023 ($).