- After almost 12 years in the position
- Praise and thanks for Paucek
- Paul Lalljie taking over
- Paucek said 92 words
(exechange) — Lanham, Maryland, November 17, 2023 — Chip Paucek, chief executive of 2U, leaves his position — as “mutually determined.” As announced by 2U Inc. in a news release and in a regulatory filing published on Friday, November 17, 2023, Christopher J. (Chip) Paucek has left his post as chief executive officer at the online education platform company, after almost 12 years in the role, effective November 16, 2023.
Generally speaking, it raises questions when a CEO leaves his post abruptly.
Chip Paucek’s duties as CEO will be taken over by Paul S. Lalljie, most recently Chief Financial Officer at 2U Inc.
“Improving operational efficiency”
2U did not give an explicit reason for Chip Paucek’s departure from the CEO post. 2U stated: “2U, Inc. (Nasdaq: TWOU), a leading online education platform company, today announced a change of leadership to spearhead the next stage of its evolution as it focuses on improving operational efficiency and delivering profitable growth and cash flow.”
Precise information regarding Chip Paucek’s future plans was not immediately available.
“Departing”
2U said: “The Board of Directors has appointed Paul Lalljie, the company’s current Chief Financial Officer, to succeed Christopher “Chip” Paucek as Chief Executive Officer and as a member of the Board of Directors, effective immediately.”
2U further said: “Christopher “Chip” J. Paucek, the Company’s Chief Executive Officer and a member of the Board of Directors (the “Board”), will be departing from the role of Chief Executive Officer and resigning as a member of the Board, effective as of November 16, 2023 (the “Transition Date”) but will continue as an employee of the Company until December 15, 2023 (the “Separation Date”).”
Share price decline since November 2022
The announcement follows a decline in 2U Inc.’s share price of 82% since November 2022.
In the position of CEO since 2012
Chip Paucek became CEO of the Company in 2012.
Paucek will remain an employee of the company through December 15, 2023, at which time he will transition to Special Advisor.
Paucek is a co‑founder of the Company and has served as the Company’s Chief Executive Officer and as a member of the Company’s Board since 2012.
He previously served as the Company’s President and Chief Operating Officer from April 2008 through December 2011.
Prior to 2U, Paucek served as the Chief Executive Officer of Smarterville, Inc., the parent company of Hooked on Phonics, from 2007 until 2008.
From 2004 to 2007, Paucek served as Vice President of Business Development and President of Educate Products for Educate, Inc.
In 2004, Paucek served as Deputy Campaign Manager for the successful reelection campaign of United States Senator Barbara Mikulski.
Paucek began his career in 1993 by co‑founding Cerebellum Corporation, the media company behind the award‑winning educational television program and video series, Standard Deviants, and he led Cerebellum as Co‑Chief Executive Officer until 2003.
Paucek holds a B.A. from The George Washington University and an M.B.A. from the Kenan‑Flagler Business School of the University of North Carolina at Chapel Hill.
92 words by Chip Paucek
In the release announcing his departure as CEO of 2U Inc., Chip Paucek received praise and thanks.
In announcing his departure, Chip Paucek said 92 words.
“Take the necessary steps to deliver profitable growth in the future”
Chip Paucek stated: “It has been an honor to lead such a dynamic and innovative team. This company has been a source of continuous inspiration and growth. I am deeply grateful for the opportunity to contribute to its impressive legacy and am proud of what we have achieved together. Continuity of leadership is important, and Paul has been a key member of the team at 2U for more than four years. I am confident that under Paul’s leadership, the company is well positioned to take the necessary steps to deliver profitable growth in the future.”
Push-out Score for Chip Paucek’s move determined
The Push-out Score indicates on a scale of 0 to 10 how likely it is that Chip Paucek was pushed out or felt pressure to leave his position.
exechange reached out to 2U and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 47.2023 ($).