- After around 13 years in the position
- Praise and thanks for Heppelmann
- Neil Barua taking over
- Heppelmann will remain as Chairman at PTC
- Heppelmann spoke at length and said 131 words
(exechange) — Boston, Massachusetts, July 26, 2023 — Jim Heppelmann, chief executive of PTC, is set to leave his position. His upcoming departure is made public at an early stage. As announced by PTC Inc. in a news release and in a regulatory filing published on Wednesday, July 26, 2023, James (Jim) Heppelmann leaves his post as chief executive officer at the software company, after around 13 years in the role, effective as of the close of PTC’s 2024 Annual Meeting of Stockholders, which is expected to be held on February 14, 2024.
Jim Heppelmann’s duties as CEO will be taken over by Neil Barua, currently President of the Service Lifecycle Management business at PTC Inc.
“Culmination of the Board’s comprehensive succession planning process”
The planned management change is explained as follows. PTC stated: “The CEO transition is the culmination of the Board’s comprehensive succession planning process to ensure leadership continuity and to position PTC for continued growth. Mr. Heppelmann and Mr. Barua will work closely together through February 2024 to ensure an orderly transition of responsibilities.”
Heppelmann will remain as Chairman at PTC
PTC stated: “Effective immediately, Mr. Heppelmann is appointed Chairman of the Board, and Mr. Barua is appointed CEO-elect and to PTC’s Board of Directors.”
“Retire”
PTC said: “Neil Barua, President of PTC’s Service Lifecycle Management business, will succeed James Heppelmann as Chief Executive Officer of PTC at the time of the Company’s annual shareholder meeting in February 2024. At that time, Mr. Heppelmann will step down as CEO and retire, concluding a distinguished 26 years of service at the Company, including 13 years as CEO.”
Share price increase since July 2018
The announcement follows an increase in PTC Inc.’s share price of 54% since July 2018.
In the position of CEO since 2010
Jim Heppelmann became CEO of the Company in 2010.
His bio reads as follows.
CAREER HIGHLIGHTS:
- President and Chief Executive Officer, PTC, October 2010 – Present
- President and Chief Operating Officer, PTC, March 2009 – September 2010
- Executive Vice President and Chief Product Officer, PTC, February 2003 – February 2009
- Executive Vice President, Software Solutions, and Chief Technology Officer, PTC, June 2001 – January 2003
- Joined PTC in 1998
EDUCATION:
- Bachelor’s degree in Mechanical Engineering – University of Minnesota
131 words by Jim Heppelmann
In the news release announcing his departure as CEO of PTC Inc., Jim Heppelmann received praise and thanks.
In announcing his departure, Jim Heppelmann spoke at length and said 131 words.
“Sustained growth and success”
Jim Heppelmann stated: “I’m immensely proud of all that PTC has accomplished during my 26 years with the Company, including these last 13 as CEO. PTC has become a premier digital transformation partner to our customers, with the most differentiated software portfolio in our industry. I’m confident that PTC has never been in a better position to deliver value to our customers and our shareholders as we begin this next chapter. Having worked closely with Neil since the ServiceMax acquisition, I can attest first-hand to his focus on our customers’ and employees’ success, his understanding of PTC’s market opportunities for the entire software portfolio, and his principles of financial and operational discipline. I’m confident that Neil, along with our proven executive leadership team, will keep PTC on a path of sustained growth and success.”
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 314 CEO departures in the Russell 3000 Index evaluated over the past 12 months (July 26, 2022, to July 25, 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 personal reasons 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 Jim Heppelmann’s move determined
The Push-out Score regarding Jim Heppelmann’s move is explained point by point in the exechange report.
Read the full story in the exechange report 31.2023 ($).