- Signs for push-out forces
- After almost three years on the job
- Praise and thanks for Davis
- Mark E. Speese taking over in the interim
- Search for a successor
(management-change.com) — Plano, Texas, January 09, 2017 — Robert Davis, chief executive of Rent-A-Center, leaves. It is an abrupt change. As announced by Rent-A-Center, Inc. in a news release on Monday, January 09, 2017, Robert D. Davis leaves the post as Chief Executive Officer at the rent-to-own furniture and appliance retailer in a surprising move after almost three years on the job, effective immediately.
No company wants a CEO to flame out in the first years.
Rent-A-Center will undertake a search for a successor.
Davis’ duties are taken over in the interim by Mark E. Speese, currently Board Chairman at Rent-A-Center, Inc.
“As a founder of Rent-A-Center, Speese brings a tremendous knowledge of the business and a strategic vision for the Company,” Rent-A-Center said.
No reason given
In the announcement, Rent-A-Center did not explicitly explain the obviously compelling reason for Davis’ sudden move, opening the door for speculation.
Generally speaking, it is often a wake-up call for shareholders when a CEO leaves the position abruptly and without a reasonable explanation.
Rent-A-Center said: “The Board of Directors of Rent-A-Center, Inc. … today announced the resignation of Robert D. Davis as Chief Executive Officer and director effective immediately.”
Precise information about the future plans of Davis was not immediately available.
Share price decline
The change follows a sharp decline in the share price of Rent-A-Center, Inc. since December 2014.
On the job as CEO since 2014
Davis has served as Chief Executive Officer of Rent-A-Center since February 2014.
From February 2008 until February 2014, Davis also served as the Company’s Executive Vice President – Finance.
From September 1999 until February 2008, Davis also served as the Company’s Senior Vice President – Finance.
From September 1998 until September 1999, Davis also served as the Company’s Vice President – Finance and Treasurer.
Davis began his employment with the Company in 1993.
Signs for push-out forces
It is not completely certain what forces eventually triggered Robert Davis’ move.
The Push-out Score™ determined by management-change.com suggests that push-out forces may have contributed to the management change.
Read the full story in the management-change.com report 03.2017 ($).