- After almost seven years in the position
- Mark Tkach taking over temporarily
- Search for a successor
(exechange) — Dallas, Texas, June 16, 2023 — Marshall Chesrown, chief executive of RumbleOn, leaves his position. As announced by RumbleOn Inc. in a news release published on Friday, June 16, 2023, and in a regulatory filing published on Thursday, June 15, 2023, Marshall Chesrown has left his post as chief executive officer at the powersports platform, after almost seven years in the role, effective June 15, 2023.
RumbleOn will undertake a search for a successor.
Marshall Chesrown’s duties as CEO will be taken over temporarily by Mark Tkach, Co-Founder of RideNow, as Interim Chief Executive Officer.
“Allegations surrounding Mr. Chesrown’s use of Company resources”
The management change is explained as follows. Steve Pully, Chairman of the RumbleOn Board of Directors, stated: “Before his departure, the Company was advised of certain allegations surrounding Mr. Chesrown’s use of Company resources. The independent directors take all such allegations seriously and have hired independent counsel to assist in an investigation, which is ongoing. The Company has made no determination regarding the allegations and there have been no releases or other agreements with Mr. Chesrown as of the date of this filing.”
Precise information regarding Marshall Chesrown’s future plans was not immediately available.
“Resignation”
RumbleOn stated: “RumbleOn, Inc. (NASDAQ: RMBL) (“RumbleOn” or the “Company”), the nation’s first technology-based powersports platform, today announced that the Board of Directors (“the Board”) has appointed Mark Tkach, the Co-Founder of the RideNow powersports group, acquired by RumbleOn in August of 2021, and a major shareholder, to serve as the Interim Chief Executive Officer of the Company, following the resignation of Marshall Chesrown from that role on June 15, 2023.”
RumbleOn stated: “On June 11, 2023, Marshall Chesrown, Chief Executive Officer (“CEO”) and a director of RumbleOn, Inc. (the “Company” or “RumbleOn”), provided the Board of Directors of the Company notice of his resignation as CEO of the Company, which is effective on June 15, 2023.”
Share price decline since June 2022
The announcement follows a decline in RumbleOn Inc.’s share price of 37% since June 2022.
In the position of CEO since 2016
Marshall Chesrown became CEO of the Company in 2016.
Marshall Chesrown has served as the Company’s Chief Executive Officer since October 24, 2016.
Chesrown served as the Company’s Chairman from October 24, 2016 to May 9, 2023.
Chesrown has over 35 years of leadership experience in the automotive retail sector. From December 2014 to September 2016, Chesrown served as Chief Operating Officer and as a director of Vroom.com, an online direct car retailer (“Vroom”).
Chesrown served as Chief Operating Officer of AutoAmerica, an automotive retail company, from May 2013 to November 2014.
Previously, Chesrown served as the President of Chesrown Automotive Group from January 1985 to May 2013, which was acquired by AutoNation, Inc., a leading automotive retail company, in 1997.
Chesrown served as Senior Vice President of Retail Operations for AutoNation from 1997 to 1999. From 1999 to 2013, Chesrown served as the Chairman and Chief Executive Officer of Blackrock Development, a real estate development company widely known for development of the nationally recognized Golf Club at Black Rock.
Chesrown filed for personal bankruptcy in May 2013, which petition was discharged in January 2017.
No statement by Marshall Chesrown
The announcement of his departure as CEO does not include a statement by Marshall Chesrown.
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 16, 2022, to June 15, 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 Marshall Chesrown’s move determined
The Push-out Score regarding Marshall Chesrown’s move is explained point by point in the exechange report.
exechange reached out to RumbleOn and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 25.2023 ($).