- Strong signs for push-out forces
- After less than two years on the job
- Laud, praise, thanks and good wishes for Luquette
- Douglas Stephens takes over
(management-change.com) — Houston, Texas, November 14, 2016 — Gary Luquette, chief executive of Frank’s, leaves. It is an abrupt change. As announced by Frank’s International N.V. in a news release and in a regulatory filing published on Monday, November 14, 2016, Gary P. Luquette leaves the post as Chief Executive Officer at the oil services company in a surprising move after less than two years on the job, effective November 15, 2016.
No company wants a CEO to flame out in the first years.
Luquette leaves the company effective December 31, 2016.
Luquette’s duties are taken over by Douglas Stephens, most recently President of the global pressure pumping division at Baker Hughes, Inc.
The fact that Luquette’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
No reason given
In the announcement, Frank’s did not explicitly explain the obviously compelling reason for Luquette’s sudden move, opening the door for speculation.
Generally speaking, it is often an alarm signal for stockholders when a CEO leaves the position abruptly and without a reasonable explanation.
Frank’s said: “Mr. Stephens will succeed Gary Luquette.”
Precise information about the future plans of Luquette was not immediately available.
Share price decline
The change follows a decline in the share price of Frank’s International N.V. since October 2013.
Chaired by Michael C. Kearney
Frank’s International N.V. is chaired by Michael C. Kearney.
Kearney was appointed Chairman of the Supervisory Board, effective as of December 31, 2015.
On the job as CEO since 2015
Gary Luquette has served as President and CEO since January 2015.
Luquette has served on the Company’s supervisory board since November 2013.
Previously, Luquette was the president of Chevron North America Exploration and Production Company from April 2006 until his retirement in September 2013.
During his 35-year career at Chevron, Luquette’s leadership roles also included president of North America Exploration and Production Company and managing director of Chevron Upstream Europe.
Earlier Chevron positions included vice president, profit center manager, advisor and engineer.
Luquette is a member and chairman of the board of directors of McDermott International, Inc. and a member of the board of directors of the National Ocean Industries Association (NOIA).
He has been a member of the Greater Houston Partnership’s executive committee and the United Way of Greater Houston board of directors, as well as a member of the American Petroleum Institute and the former chair of its upstream committee.
Luquette graduated with a Bachelor of Science degree in civil engineering from the University of Louisiana at Lafayette in 1978.
Luquette will remain an employee and serve as a special advisor to the Company through December 31, 2016 to assist in transitioning his duties to his successor and will remain a non-executive member of the Supervisory Board until the next annual meeting of shareholders; he will also serve as a consultant to the Company during the year 2017.
Strong signs for push-out forces
It is not completely certain what forces eventually triggered Gary P. Luquette’s move.
The Push-out Score™ determined by management-change.com suggests strong signs for push-out forces that may have contributed to the management change.
Read the full story in the management-change.com report 43.2016 ($).