- After about three years in the position
- Praise, thanks and good wishes for Darrow
- Jantoon Reigersman taking over
- Darrow said 92 words
(exechange) — Santa Monica, California, June 14, 2023 — Mike Darrow, chief executive of TrueCar, leaves his position. As announced by TrueCar Inc. in a news release and in a regulatory filing published on Wednesday, June 14, 2023, Michael D. (Mike) Darrow leaves his post as chief executive officer at the vehicle listings company, after about three years in the role, effective immediately.
Mike Darrow’s duties as CEO will be taken over by Jantoon Reigersman, most recently Chief Operating Officer at TrueCar Inc.
It is a generational change. Jantoon Reigersman is about 24 years younger than Mike Darrow.
TrueCar also announced a strategic restructuring to streamline the organization, including a workforce reduction impacting approximately 102 positions, or 24% of the Company’s headcount.
“Challenging macroeconomic environment”
TrueCar did not give an explicit reason for Mike Darrow’s departure from the CEO post. Barbara Carbone, incoming Chair of the Board, stated: “As part of the reorganization, the Board has appointed Jantoon Reigersman as TrueCar’s new President and Chief Executive Officer. Jantoon has been with us for over two years, first as our Chief Financial Officer and more recently as our Chief Operating Officer, during which time he has worked tirelessly to ensure TrueCar’s success and improve its financial condition. The Board is confident that he is well suited to successfully navigate a challenging macroeconomic environment while positioning the Company for profitable growth.”
Precise information regarding Mike Darrow’s future plans was not immediately available.
“Departing”
TrueCar said: “Mr. Reigersman succeeds Michael Darrow, who is departing TrueCar and vacating his position on the Board.”
Share price decline since June 2022
The announcement follows a decline in TrueCar Inc.’s share price of 28% since June 2022.
In the position of CEO since 2020
Mike Darrow became CEO of the Company in 2020.
Michael D. Darrow served as the Company’s President, Chief Executive Officer and a member of the Company’s Board since March 2020.
From November 2017 until March 2020, he served as the Company’s Executive Vice President of Partner and OEM Development and served as the Company’s Executive Vice President of OEM Development from March 2017 to November 2017.
Darrow also served as the President of the Company’s subsidiary, ALG, Inc., from January 2018 until its divestiture in November 2020.
From June 2016 until he joined the Company, Darrow was an Automotive Industry Consultant for Inventory Command Center LLC, before which Darrow served in numerous roles at Edmunds.com Inc. from July 2000 to August 2014, including as Chief Executive Officer of Edmunds Data Services, Executive Vice President of Sales and Chief Sales Officer.
Darrow holds a B.S. in Economics from Allegheny University.
92 words by Mike Darrow
In the news release announcing his departure as CEO of TrueCar Inc., Mike Darrow received praise, thanks and good wishes.
In announcing his departure, Mike Darrow said 92 words.
“The best of luck”
Mike Darrow stated: “Leading this great company for the last four years has been a tremendous honor. Through it all, TrueCar has remained guided by its north star, building the industry’s most personalized and efficient auto shopping experience and bringing more of the process online. I am proud of the groundwork that has been laid as the Company’s transformation is underway. Furthermore, we have established a strong leadership team to take the Company to the next chapter. I wish Jantoon and the rest of the leadership team the best of luck in writing that chapter.”
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 313 CEO departures in the Russell 3000 Index evaluated over the past 12 months (June 14, 2022, to June 13, 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 Mike Darrow’s move determined
The Push-out Score regarding Mike Darrow’s move is explained point by point in the exechange report.
exechange reached out to TrueCar and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 25.2023 ($).
