- After about four years in the position
- Praise and thanks for Salvino
- Raul Fernandez taking over temporarily
- Search for a successor
- Salvino said 100 words
(exechange) — Ashburn, Virginia, December 20, 2023 — Mike Salvino, chief executive of DXC, leaves his position. As announced by DXC Technology in a news release and in a regulatory filing published on Wednesday, December 20, 2023, Michael J. (Mike) Salvino has left his post as chief executive officer at the information technology services and consulting company, after about four years in the role, effective December 18, 2023.
Generally speaking, it raises questions when a CEO leaves his post abruptly.
DXC will undertake a search for a successor.
Mike Salvino’s duties as CEO will be taken over temporarily by Raul J. Fernandez, most recently Vice Chairman and co-owner at Monumental Sports & Entertainment, as Interim Chief Executive Officer.
Already a director
Fernandez has already been a member of the board of directors of DXC. 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, Fernandez understands the expectations and dynamics of the board and has knowledge of DXC’s organization, risk-management practices and strategy.
“Drive revenue growth and expanded margins”
DXC did not give an explicit reason for Mike Salvino’s departure from the CEO post. Fernandez stated: “We are intensely focused on executing on our strategy to drive revenue growth and expanded margins, while continuing to create value for our customers and shareholders.”
Precise information regarding Mike Salvino’s future plans was not immediately available.
“No longer served”
DXC said: “Fernandez succeeds Mike Salvino, who served as DXC President and CEO since 2019 and as Chairman since 2022 and provided leadership for a significant restructuring of the Company’s operations and balance sheet. In mutual agreement with the Board, he will transition from his role as Chairman of the Board, effective immediately, and will remain in an advisory role until March 31, 2024 to help ensure a seamless transition.
Additionally, DXC Lead Independent Director David Herzog has been named Chairman of the Board, to work closely with Fernandez during this time.”
DXC further said: “Mr. Fernandez succeeds Michael Salvino, who no longer served as the Company’s President and Chief Executive Officer on December 18, 2023.”
Share price decline since December 2022
The announcement follows a decline in DXC Technology’s share price of 15% since December 2022.
In the position of CEO since 2019
Mike Salvino became CEO of the Company in 2019.
Mike Salvino served as Chairman, President and Chief Executive Officer of DXC.
He was appointed Chief Executive Officer of DXC in 2019, has been a member of the Board of Directors since May 2019, and became Chairman of the Board of Directors of DXC effective July 2022.
Salvino has expertise in transforming businesses by building better cultures, strengthening customer relationships, and focusing on a company’s financial foundation.
At DXC he has also focused on reducing debt, better managing capital allocation, and driving growth through expanded margin, earnings per share (EPS) and free cash flow (FCF).
Prior to joining DXC, Salvino served as managing director of Carrick Capital Partners from 2016 to 2019.
Prior to his tenure at Carrick, from 2009 to 2016, Salvino served as group chief executive of Accenture Operations, one of Accenture’s five businesses, where he led a team of more than 100,000 consulting and outsourcing professionals focused on providing business process outsourcing, infrastructure, security and cloud services to deliver business value and drive productivity and digital improvements for clients.
Prior to that, he held leadership roles in the HR outsourcing business at Hewitt Associates Inc. and as president of the Americas Region at Exult Inc.
Mike Salvino is a board member of the Atrium Health Foundation, the largest healthcare system in the Carolinas, where he serves on the Investment Oversight Committee for both the hospital and the foundation.
Salvino graduated from Marietta College with a BS degree in industrial engineering.
He is a member of the Board of Visitors of the Duke University Pratt School of Engineering.
100 words by Mike Salvino
In the release announcing his departure as CEO of DXC Technology, Mike Salvino received praise and thanks.
In announcing his departure, Mike Salvino said 100 words.
“Raul and David are perfect leaders”
Mike Salvino stated: “It has been a privilege to serve as CEO for the last four years as we undertook a significant transformation journey at DXC. We achieved our goal of bringing stability to the business by cementing our financial foundation and assembling the right senior management team needed to drive better performance and deliver on the company’s strategic objectives moving forward. Raul and David are perfect leaders to oversee DXC into its next phase and continue its strong track record of forging trusted client relationships and creating an environment to grow and develop talent. I wish them and the team continued success.”
Push-out Score for Mike Salvino’s move determined
The Push-out Score indicates on a scale of 0 to 10 how likely it is that Mike Salvino was pushed out or felt pressure to leave his position.
exechange reached out to DXC and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 52.2023 ($).