- After 10 years in the position
- Dave DeMarco taking over
(exechange) — Glens Falls, New York State, May 15, 2023 — Tom Murphy, chief executive of Arrow, leaves his position. As announced by Arrow Financial Corp. in a news release and in a regulatory filing published on Monday, May 15, 2023, Thomas J. (Tom) Murphy has left his post as chief executive officer at the multi-bank holding company, after 10 years in the role, effective May 12, 2023.
Tom Murphy’s duties as CEO will be taken over by David S. (Dave) DeMarco, most recently Chief Banking Officer at Arrow Financial Corp.
No reason given
In the announcement, Arrow did not explicitly explain the reason for the move.
Precise information regarding Tom Murphy’s future plans was not immediately available.
“Terminated his employment”
Arrow said: “Thomas J. Murphy terminated his employment as President and Chief Executive Officer of the Company and its lead subsidiary, Glens Falls National Bank and Trust Company (“GFNB”) and as a director of the Company and from all other positions he holds with the Company and its affiliates, effective May 12, 2023.”
Share price decline since January 2023
The announcement follows a decline in Arrow Financial Corp.’s share price of 42% since January 2023.
In the position of CEO since 2013
Tom Murphy became CEO of the Company in 2013.
Murphy has been a Director of the Company since 2012 and a Director of GFNB since 2011.
He has been CEO of the Company and GFNB since 2013.
He became President of the Company and GFNB in 2012 and President of GFNB in 2011.
Murphy joined GFNB in 2004 as Manager of the Personal Trust Department after 16 years as a founding partner in CMJ, LLP, a Glens Falls certified public accounting firm.
He served in a variety of banking, trust and corporate capacities prior to being appointed Presdient and CEO of the Company and GFNB.
Murphy holds a bachelor’s degree in Business Administration from Siena College.
In January 2021, Murphy was elected as a Class A Director of the Federal Reserve Bank of New York, one of three Directors representing member banks in the Second District of the Federal Reserve System.
No statement by Tom Murphy
The announcement of his departure as CEO does not include a statement by Tom Murphy.
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 316 CEO departures in the Russell 3000 Index evaluated over the past 12 months (May 15, 2022, to May 14, 2023), the average Push-out Score was 6.1, 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 Tom Murphy’s move determined
The Push-out Score regarding Tom Murphy’s move is explained point by point in the exechange report.
exechange reached out to Arrow and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 21.2023 ($).