- After around eight years in the position
- Praise and thanks for Adams
- Search for a successor
- Adams said 80 words
(exechange) — Novi, Michigan, June 12, 2023 — Daryl Adams, chief executive of Shyft, leaves his position. As announced by Shyft Group Inc. in a news release and in a regulatory filing published on Monday, June 12, 2023, Daryl M. Adams leaves his post as chief executive officer at the specialty vehicle manufacturing company, after around eight years in the role, effective when his successor joins the Company.
Shyft will undertake a search for a successor.
“Now is the right time”
The planned management change is explained as follows. James Sharman, Chair of the Shyft Board, stated: “The Board believes now is the right time to undertake a search for Daryl’s successor to lead the next phase of our transformation and growth strategy.”
Precise information regarding Daryl Adams’s future plans was not immediately available.
Shyft said: “The Shyft Group, Inc. (NASDAQ: SHYF) (“Shyft” or “the Company”), the North American leader in specialty vehicle manufacturing, assembly, and upfit for the commercial, retail, and service specialty vehicle markets, today announced that its Board of Directors and Daryl Adams have initiated a succession process whereby Mr. Adams will transition from the role of President and CEO once a successor has been appointed. At that time, he will also resign from the Board of Directors and will remain with the Company in an advisory capacity for six months to help ensure a smooth transition.”
Shyft further said: “The Shyft Group, Inc. (“Shyft” or the “Company”) is implementing a transition process for the office of President and Chief Executive Officer (“CEO”). On June 7, 2023, the Company and its current CEO, Daryl M. Adams, reached agreement on the commencement of the CEO succession process and Mr. Adams’ role in the transition process.”
Share price decline since June 2021
The announcement follows a decline in Shyft Group Inc.’s share price of 34% since June 2021.
In the position of CEO since 2015
Daryl Adams became CEO of the Company in 2015.
Adams joined the Company as Chief Operating Officer in July 2014 and was appointed to the Board of Directors in December 2014, at which time he was also named President and Chief Executive Officer, effective in February 2015.
Prior to joining Shyft, Adams served for seven years as Chief Executive Officer of Midway Products Group, a privately held Tier 1 automotive supplier in stampings and assemblies.
Prior to that, he held a succession of management positions over a 17-year career with Lear Corporation, a global automotive technology leader in seating and e-systems, including senior leadership and international roles in Lear’s North American and European operations.
Adams holds a Master of Business Administration degree from Michigan State University and a Bachelor of Science degree in Industrial Management and Manufacturing from Lawrence Technological University.
He is the immediate past board chair of the Lansing Economic Area Partners and is a board member of the Detroit Safety Foundation.
Adams is an active member of Business Leaders for Michigan and various other state leadership and manufacturing associations.
80 words by Daryl Adams
In the news release announcing his departure as CEO of Shyft Group Inc., Daryl Adams received praise and thanks.
In announcing his departure, Daryl Adams said 80 words.
“The near-term market and macroeconomic environment remain dynamic”
Daryl Adams stated: “Serving as the CEO of Shyft has been the highlight of my professional career. Today, Shyft is well positioned in the attractive last-mile delivery and infrastructure end-markets with a growing roster of innovative brands, including a cutting-edge EV platform. While the near-term market and macroeconomic environment remain dynamic, I am as confident as ever in our team’s ability to deliver for customers and drive long-term value for shareholders. I look forward to supporting the Company through a smooth leadership transition.”
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 311 CEO departures in the Russell 3000 Index evaluated over the past 12 months (June 12, 2022, to June 11, 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, time with family or pursuit of other opportunities 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 Daryl Adams’s move determined
The Push-out Score regarding Daryl Adams’s move is explained point by point in the exechange report.
exechange reached out to Shyft and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 25.2023 ($).