- After almost 11 years in the position
- Rajiv Prasad taking over
- Rankin will remain as Executive Chairman at Hyster-Yale
(exechange) — Cleveland, Ohio, May 10, 2023 — Alfred Rankin, chief executive of Hyster-Yale, leaves his position. As announced by Hyster-Yale Materials Handling Inc. in a regulatory filing published on Wednesday, May 10, 2023, Alfred M. Rankin has left his post as chief executive officer at the corporation that produces forklift trucks and other material handling equipment, after almost 11 years in the role, effective May 9, 2023.
Alfred Rankin’s duties as CEO will be taken over by Rajiv K. Prasad, most recently President at Hyster-Yale Materials Handling Inc.
It is a generational change. Rajiv Prasad is about 22 years younger than Alfred Rankin.
No reason given
In the announcement, Hyster-Yale did not explicitly explain the reason for the move.
Rankin will remain as Executive Chairman at Hyster-Yale
Hyster-Yale stated: “On May 9, 2023, Hyster-Yale Materials Handling, Inc. (the “Company”), as part of its long-term succession planning, appointed Rajiv K. Prasad, age 59, as President and Chief Executive Officer (“CEO”) of the Company, effective May 9, 2023 (the “Effective Date”). Alfred M. Rankin, Jr., who has served as the Company’s Chairman and CEO, assumed the role of Executive Chairman of the Board of Directors (the “Board”) of the Company on the Effective Date.”
Share price decline since May 2018
The announcement follows a decline in Hyster-Yale Materials Handling Inc.’s share price of 28% since May 2018.
In the position of CEO since 2012
Alfred Rankin became CEO of the Company in 2012.
Rankin became Chairman and Chief Executive Officer of Hyster-Yale Materials Handling, Inc. in February 2021.
Prior to that, since September 2012 when Hyster-Yale was spun-off as an independent company by NACCO Industries, Inc., Rankin was Chairman, President and Chief Executive Office of Hyster-Yale.
He joined NACCO as President and Chief Operating Officer in April 1989, became President and Chief Executive Officer in May 1991, and became Chairman, President, and Chief Executive Officer in May of 1994.
In September 2017, he retired as President and Chief Executive Officer of NACCO when NACCO spun-off its housewares-related businesses as Hamilton Beach Brands Holding Company and became Non-Executive Chairman of the Board of NACCO.
In October 2017, Rankin became Executive Chairman of the Board of Hamilton Beach Brands Holding Company.
On January 1, 2019 he became Non-Executive Chairman.
Prior to joining NACCO, he was Vice Chairman, Chief Operating Officer, and a Director of Eaton Corporation, a position he had held since April 1986.
Prior to that, he had served successively as President of Eaton’s Materials Handling and Industrial Groups, and Executive Vice President – Operations.
Prior to his fifteen years at Eaton, Rankin worked for McKinsey and Company, a management consulting firm.
Rankin received a Bachelor of Arts degree, magna cum laude, in Economics and a Juris Doctor degree from Yale University.
Rankin is a director of Hyster-Yale Materials Handling, Inc., NACCO Industries, Inc., Hamilton Beach Brands Holding Company and the National Association of Manufacturers.
He is a trustee of the Musical Arts Association, a former trustee and former Chairman of the Board of Directors of University Hospitals of Cleveland, and former trustee and Chair Emeritus of the Cleveland Museum of Art.
He is a former lead director of The Vanguard Group and Goodrich Corporation.
He is a former director of the Standard Products Company and Reliance Electric Company, and a former director and Chairman of the Board of the Fourth District Federal Reserve Bank.
He is trustee emeritus of Case Western Reserve University, former Chairperson of The Cleveland Foundation, and former trustee and President of the Board of Trustees of Hathaway Brown School.
He is also a former trustee of Oberlin College, the Holden Arboretum, and the World Resources Institute.
No statement by Alfred Rankin
The announcement of his departure as CEO does not include a statement by Alfred Rankin.
41% 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 316 CEO departures in the Russell 3000 Index evaluated over the past 12 months (May 10, 2022, to May 9, 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 41% 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 Alfred Rankin’s move determined
The Push-out Score regarding Alfred Rankin’s move is explained point by point in the exechange report.
exechange reached out to Hyster-Yale and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 20.2023 ($).