- After about six years in the position
- Praise and thanks for Smith
- Peter Matt taking over
- Smith will remain as Executive Chairman at Commercial Metals
- Smith kept it short and said 59 words
(exechange) — Irving, Texas, July 10, 2023 — Barbara Smith, chief executive of Commercial Metals, leaves her position. As announced by Commercial Metals Co. in a news release and in a regulatory filing published on Monday, July 10, 2023, Barbara R. Smith leaves her post as chief executive officer at the steel and metal manufacturer, after about six years in the role, effective September 1, 2023.
Barbara Smith’s duties as CEO will be taken over by Peter R. Matt, currently President at Commercial Metals Co.
“Thoughtful and deliberate long-term succession planning process”
The management change is explained as follows. Barbara R. Smith stated: “We have every confidence in Peter as he takes on the role and responsibilities of Chief Executive Officer, which is the result of a thoughtful and deliberate long-term succession planning process.”
Smith will remain as Executive Chairman at Commercial Metals
Commercial Metals stated: “Barbara R. Smith, the Company’s Chief Executive Officer and Chairman, has chosen to retire as Chief Executive Officer and has been appointed Executive Chairman of the Board, effective September 1, 2023.”
“Retire”
Commercial Metals said: “Barbara R. Smith, the Company’s Chairman and Chief Executive Officer, has elected to retire as Chief Executive Officer, effective September 1, 2023.”
Share price increase since September 2017
The announcement follows an increase in Commercial Metals Co.’s share price of 176% since September 2017. September 2017 is the month in which Smith’s tenure as CEO began.
In the position of CEO since 2017
Barbara Smith became CEO of the Company in 2017.
Smith was appointed President and Chief Executive Officer of CMC in September 2017 and Chairman of the Board in January 2018.
Prior thereto, Smith served as CMC’s President and Chief Operating Officer from January 2017 to September 2017, Chief Operating Officer from January 2016 to January 2017, and Senior Vice President and Chief Financial Officer from May 2011 to January 2016.
Prior to joining CMC, Smith served as Vice President and Chief Financial Officer of Gerdau Ameristeel Corporation, a mini mill steel producer, from July 2007 to May 2011, after joining Gerdau Ameristeel as Treasurer in July 2006.
From February 2005 to July 2006, she served as Senior Vice President and Chief Financial Officer of FARO Technologies, Inc., a developer and manufacturer of 3-D measurement and imaging systems.
From 1981 to 2005, Smith was employed by Alcoa Inc., a producer of primary aluminum, fabricated aluminum and alumina, where she held a variety of financial leadership positions.
59 words by Barbara Smith
In the news release announcing her departure as CEO of Commercial Metals Co., Barbara Smith received praise and thanks.
In announcing her departure, Barbara Smith kept it short and said 59 words.
“I am pleased”
Barbara Smith stated: “We have every confidence in Peter as he takes on the role and responsibilities of Chief Executive Officer, which is the result of a thoughtful and deliberate long-term succession planning process. Peter brings a wealth of financial, strategic and executive leadership experience, and I am pleased to transition the role of Chief Executive Officer of the Company to Peter.”
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 (July 10, 2022, to July 9, 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.
Closer look at female CEOs
Female CEOs in the U.S. have been found to be more likely to be pushed out than male CEOs. Over the past 12 months, outgoing female CEOs have received an average Push-out Score of 6.5, slightly above the average Push-out Score of 6.1 for outgoing male CEOs.
Female CEOs have a 43% shorter tenure. Women in the role step down after an average tenure of 4.7 years, compared with 8.2 years for men, the exechange data shows, which covers 24 departing female CEOs and 289 departing male CEOs.
On a five-year view, departing female CEOs received an average Push-out Score of 5.8, which was significantly higher than the average Push-out Score of 5.3 for departing male CEOs. This suggests that women were more likely to be pushed out than men, even when using a longer observation period. This is evident from exechange data covering 1,403 CEO departures (84 of them women and 1,319 men) from 2017 to 2021. Female CEOs who announced their departure from 2017 to 2021 had a 26% shorter tenure, exiting after an average of 6.6 years, compared with 8.9 years for men, the exechange data shows.
Push-out Score for Barbara Smith’s move determined
The Push-out Score regarding Barbara Smith’s move is explained point by point in the exechange report.
exechange reached out to Commercial Metals and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 29.2023 ($).