- After about six years in the position
- Praise and thanks for Coughlin
- Mike Mohan taking over temporarily
- Search for a successor
- Coughlin kept it short and said 45 words
(exechange) — San Diego, California, March 13, 2024 — Ron Coughlin, chief executive of Petco, leaves his position. As announced by Petco Health & Wellness Co. in a news release and in a regulatory filing published on Wednesday, March 13, 2024, Ronald V. (Ron) Coughlin has left his post as chief executive officer at the pet retailer, after about six years in the role, effective March 12, 2024.
Generally speaking, it raises questions when a CEO leaves his post abruptly.
Petco will undertake a search for a successor.
Ron Coughlin’s duties as CEO will be taken over temporarily by R.Michael (Mike) Mohan, a former President and Chief Operating Officer at Best Buy Co., Inc., as Interim Chief Executive Officer.
Already a director
Mohan has already been a member of the board of directors of Petco. 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, Mohan understands the expectations and dynamics of the board and has knowledge of Petco’s organization, risk-management practices and strategy.
“Improve growth, drive margin and generate cash”
Petco did not give an explicit reason for Ron Coughlin’s departure from the CEO post. Mohan stated: “I have a deep belief in our purpose and I look forward to working with the leadership team and our partners to continue strengthening our business, driving profitability through operational discipline and execution that will improve growth, drive margin and generate cash to create shareholder value.”
Precise information regarding Ron Coughlin’s future plans was not immediately available.
“Stepped down/role…ended”
Petco said: “Ron Coughlin has stepped down as Petco’s Chief Executive Officer, Chairman, and member of the Board of Directors. He will serve as an advisor to the Board to support the leadership transition.”
Petco further said: “Mr. Mohan succeeds Ronald V. Coughlin, Jr., whose role as the Company’s Chief Executive Officer, Chairman and member of the Board ended effective March 12, 2024.”
“Not due to any disagreement”
Petco stated, regarding the change: “Mr. Coughlin’s departure from the Board is not due to any disagreement with the Company or on any matter related to the Company’s operations, policies or practices.”
Share price decline since March 2021
The announcement follows a decline in Petco Health & Wellness Co.’s share price of 88% since March 2021.
In the position of CEO since 2018
Ron Coughlin became CEO of the Company in 2018.
Ron Coughlin has served as the Company’s CEO since June 2018.
He was appointed to serve as Chairman of the Company’s board of directors in January 2021 in connection with the Company’s initial public offering.
Prior to that time, he served as one of the Company’s directors since June 2018.
Prior to joining the Company, Coughlin served from 2014 to 2018 as President of the Personal Systems segment of HP Inc. (then-Hewlett-Packard Company), a $33 billion global business that offers consumer and commercial products and services.
Previously, he served as Senior Vice President of Consumer PCs, Senior Vice President of LaserJet Hardware and Commercial Document Services and Solutions, and Senior Vice President of Sales, Strategy, and Marketing at HP.
Prior to joining HP in 2007, Coughlin spent 13 years at PepsiCo in a range of senior executive roles, including Chief Marketing Officer of Tropicana and PepsiCo International Beverages.
Coughlin earned a bachelor’s degree in international marketing from Lehigh University and a master’s degree in business administration from the Kellogg School of Management at Northwestern University.
45 words by Ron Coughlin
In the release announcing his departure as CEO of Petco Health & Wellness Co., Ron Coughlin received praise and thanks.
In announcing his departure, Ron Coughlin kept it short and said 45 words.
“Tremendous change”
Ron Coughlin stated: “Working with our amazing partners through a period of tremendous change and growth has been the opportunity of a lifetime. I am proud of the differentiated business model we’ve built that delivers the very best for pets, which positions the Company well for the future.”
The above text is an excerpt from the exechange report 12.2024 ($), publication date March 18, 2024.