- Signs for push-out forces
- After about a year on the job
- David Bergman taking over in the interim
(management-change.com) — Baltimore, Maryland, January 31, 2017 — Chip Molloy, finance chief of Under Armour, leaves. It is a change at short notice. As announced by Under Armour, Inc. in a news release and in a regulatory filing published on Tuesday, January 31, 2017, Lawrence (Chip) Molloy leaves the post as Chief Financial Officer at the sports clothing and accessories company in a surprising move after about a year on the job, effective February 03, 2017.
No company wants a CFO to flame out in the first year.
Molloy’s duties are taken over in the interim by David E. Bergman, currently Senior Vice President, Corporate Finance at Under Armour, Inc.
The imminent management change is explained as follows. Under Armour said: “On January 25, 2017, Lawrence ‘Chip’ Molloy, the Chief Financial Officer of Under Armour, Inc. …, informed the Company of his intention to resign from his position as CFO due to personal reasons.”
In the announcement, the company did not detail the personal reasons causing Molloy to leave the position, leaving room for speculation. Generally speaking, “personal reasons” may include, among others, family-related reasons or disagreement.
Precise information about the future plans of Molloy was not immediately available.
Share price decline
The change follows a sharp decline in the share price of Under Armour, Inc. since April 2016.
Chaired by Kevin A. Plank
Under Armour, Inc. is chaired by Kevin A. Plank. Plank is the founder, CEO and Chairman of Under Armour.
On the job as CFO since 2016
Molloy has been Chief Financial Officer since January 2016.
Prior to joining Under Armour, he served as Senior Advisor to Roark Capital Group, a private equity firm from October 2014 to December 2015.
Prior thereto, Molloy served as Special Advisor to PetSmart, Inc. from June 2013 to April 2014, and had previously served as Chief Financial Officer of PetSmart from September 2007 to June 2013.
Prior thereto, he worked with Circuit City Stores, Inc., and served as Chief Financial Officer of Retail from 2006 to 2007, Vice President of Financial Planning and Analysis from 2004 to 2006 and Director of Financial Planning and Analysis from 2003 to 2004.
Prior to Circuit City, he served in various leadership, planning and strategy roles for Capital One Financial Corporation, AGL Capital Investments, LLC, Deloitte & Touche Consulting Group and the U.S. Navy.
He served ten years in the Navy as a fighter pilot, later retiring from the Navy Reserve with a rank of Commander.
At the time of Molloy’s appointment as Chief Financial Officer, Kevin Plank, Chairman and CEO, Under Armour, had said: “Under Armour is a growth company with a dynamic senior leadership team, and we are excited for Chip Molloy to help drive the business on the road to $7.5 billion in revenue by 2018. Chip’s success and experience as a public company CFO, his financial expertise and his outstanding leadership qualities will be an invaluable addition to the team.”
Molloy will remain with the company in an advisory capacity to assist with the transition.
As a general rule, when a top leader announces to step down with no permanent successor available, it is a sign that the move was unexpected and too early.
Signs for push-out forces
It is not completely certain what forces eventually triggered Chip Molloy’s move.
The Push-out Score™ determined by management-change.com suggests that push-out forces may have contributed to the management change.
Read the full story in the management-change.com report 06.2017 ($).