- After about nine years in the position
- Praise and thanks for Gorder
- Lane Riggs taking over
- Gorder will remain as Executive Chairman at Valero
- Gorder said 77 words
(exechange) — San Antonio, Texas, May 9, 2023 — Joe Gorder, chief executive of Valero, leaves his position. As announced by Valero Energy Corp. in a news release on Tuesday, May 9, 2023, Joseph W. (Joe) Gorder leaves his post as chief executive officer at the refiner, after about nine years in the role, effective June 30, 2023.
Joe Gorder’s duties as CEO will be taken over by R.Lane Riggs, currently President and Chief Operating Officer at Valero Energy Corp.
“Now is the time”
The management change is explained as follows. Robert A. Profusek, Valero’s Lead Independent Director, stated: “With the strong foundation for continued success that Joe established in place along with a strong succession development plan being executed, the Board unanimously agrees that now is the time to transition to Lane as CEO.”
Gorder will remain as Executive Chairman at Valero
Valero stated: “Joseph W. Gorder, Valero’s Chief Executive Officer and Chairman of the Board, has chosen to retire as CEO and has been elected as Executive Chairman of the Board, both effective June 30, 2023. In his new role, Mr. Gorder will lead the Board of Directors, and continue to provide advice and counsel to the CEO and Valero’s leadership on Company decisions.”
Valero said: “Joseph W. Gorder, Valero’s Chief Executive Officer and Chairman of the Board, has chosen to retire as CEO.”
Share price increase since May 2020
The announcement follows an increase in Valero Energy Corp.’s share price of 83% since May 2020.
In the position of CEO since 2014
Joe Gorder became CEO of the Company in 2014.
His bio reads as follows:
Featured experience, qualifications, and attributes:
- Global energy business leadership, risk management, and governance experience through his service as Valero’s Chairman of the Board and Chief Executive Officer (since 2014), and President (from 2012 to January 2020), his prior service as Chairman of the Board and CEO of the general partner of Valero Energy Partners LP, his European experience noted below, and his prior service as a director of a publicly traded exploration and production company.
- Refining and marketing operations experience as Valero’s President and Chief Operating Officer beginning in 2012. Prior to that, Gorder was Executive Vice President and Chief Commercial Officer (beginning in 2011), and led Valero’s European operations from its London office. Before that, he held several leadership positions with Valero and Ultramar Diamond Shamrock Corporation (UDS) with responsibilities including marketing & supply and corporate development.
- ESG, sustainability, climate, HSE, and human capital management experience through his various leadership and management roles at Valero over the past two decades, during which time he has been integrally involved in Valero’s diversification into ethanol and renewable diesel production and, as CEO, has steered Valero’s strategy to further increase its investments in economic low-carbon fuel projects. During this time he has also been actively involved in a wide array of human capital matters facing Valero’s employees. He also previously served as the chair of the compensation and benefits committee of a publicly traded exploration and production company.
Other public company boards (current): None
Prior public company boards (in last five years): Anadarko Petroleum Corporation (NYSE: APC), and the general partner of Valero Energy Partners LP (NYSE: VLP).
77 words by Joe Gorder
In the news release announcing his departure as CEO of Valero Energy Corp., Joe Gorder received praise and thanks.
In announcing his departure, Joe Gorder said 77 words.
“Our succession plan has been in place for some time”
Joe Gorder stated: “I would like to thank our employees, stockholders, business partners, and our communities where we live and work for their courage, humility and unwavering commitment to get Valero where it is today. Lane has long played a vital role in developing and implementing our strategies as a key member of Valero’s executive team. Our succession plan has been in place for some time and has progressed as planned with the complete involvement and support of the Board.”
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 312 CEO departures in the Russell 3000 Index evaluated over the past 12 months (May 9, 2022, to May 8, 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 Joe Gorder’s move determined
The Push-out Score regarding Joe Gorder’s move is explained point by point in the exechange report.
exechange reached out to Valero and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 20.2023 ($).