- After about seven consecutive months in the position
- Praise for Mariotti
- Mike Lunsford taking over temporarily
- Search for a successor
- Mariotti said 62 words
(exechange) — Everett, Washington, July 13, 2023 — Brian Mariotti, chief executive of Funko, leaves his position. As announced by Funko Inc. in a news release on Thursday, July 13, 2023, Brian Mariotti leaves his post as chief executive officer at the toymaking company, after about seven consecutive months in the role, effective immediately.
Funko will undertake a search for a successor.
Brian Mariotti’s duties as CEO will be taken over temporarily by Michael (Mike) Lunsford, a former Advisor and Vice President at McClatchy, Inc., as interim Chief Executive Officer.
Already a director
Lunsford has already been a member of the board of directors of Funko. Generally speaking, most director-turned-CEO appointments occur following a sudden resignation of the outgoing CEO and signal a lack of preparedness on the company’s part to groom internal talent. Directors-turned-executives represent a blend of outsider and insider.
They don’t have the constraints of a pure insider when it comes to leading painful changes or making unpopular decisions, and they have more company knowledge than a pure outsider.
Having been a director, Lunsford understands the expectations and dynamics of the board and has knowledge of Funko’s organization, risk-management practices and strategy.
“To recharge my batteries”
The management change is explained as follows. Mariotti stated: “While I’m going to step away from the day-to-day business to recharge my batteries, I plan to stay active on our Board.”
Precise information regarding Brian Mariotti’s future plans was not immediately available.
Funko said: “Brian Mariotti will take a leave of absence and cease serving as Funko’s CEO with full support from the company’s Board of Directors.”
Share price decline since January 2023
The announcement follows a decline in Funko Inc.’s share price of 7% since January 2023.
In the position of CEO since 2022
Brian Mariotti became CEO of the Company in 2022.
Mariotti remains a member of the Funko Board of Directors.
Brian Mariotti has served as Funko, Inc.’s Chief Executive Officer since December 2022.
From January 2022 to December 2022, Mariotti served as the Company’s Chief Creative Officer, and prior to that, Mariotti served as Funko, Inc.’s Chief Executive Officer from April 2017 to January 2022.
Mariotti has been a member of Funko, Inc.’s Board of Directors since its formation in April 2017.
Prior to the formation of Funko, Inc., Mariotti served as the Chief Executive Officer of FAH, LLC and as a member of FAH, LLC’s board of directors from October 2015 to April 2017, and as Chief Executive Officer of Funko Holdings LLC (“FHL”) and as a member of FHL’s board of directors since May 2013.
Mariotti also served as Chief Executive Officer of Funko, LLC since he acquired the business with a small group of investors in 2005.
62 words by Brian Mariotti
In the news release announcing his departure as CEO of Funko Inc., Brian Mariotti received praise.
In announcing his departure, Brian Mariotti said 62 words.
“My labor of love”
Brian Mariotti stated: “Funko has been my labor of love for nearly two decades. While I’m going to step away from the day-to-day business to recharge my batteries, I plan to stay active on our Board. I hope to come back and contribute to Funko again in new creative ways. I look forward to seeing our team and fans at San Diego Comic-Con next week.”
39% 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 13, 2022, to July 12, 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 39% 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, three in eight departing CEOs were forced out or fired.
Push-out Score for Brian Mariotti’s move determined
The Push-out Score regarding Brian Mariotti’s move is explained point by point in the exechange report.
exechange reached out to Funko and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 29.2023 ($).