- Signs for push-out forces
- After 13 years on the job
- Laud, praise and thanks for Chlapaty
- Search for a successor
- Chlapaty spoke at length and said 181 words
(exechange) — Hilliard, Ohio, March 07, 2017 — Joe Chlapaty, chief executive of ADS, leaves. His departure is made public at an early stage. As announced by Advanced Drainage Systems, Inc. in a news release and in a regulatory filing published on Tuesday, March 07, 2017, Joseph A. (Joe) Chlapaty, Chief Executive Officer, leaves the manufacturer of water management products after 13 years on the job, effective December 31, 2017.
It is the end of an era.
ADS will undertake a search for a successor.
It is a long goodbye. The announcement of Chlapaty’s move comes 10 months prior to his planned departure from the post of CEO.
In general, a top executive who announces the departure very early may be considered a lame duck.
Lengthy lead times give boards extra time to find replacements, and they also create uncertainty. Would-be successors may jockey for attention and workers may wonder who is actually in charge.
Generally speaking, lame-duck leaders can take a forceful role in selecting a successor and are not expected to launch major strategy shifts.
“As I journey towards my 72nd birthday …, I believe the timing is right”
The management change is explained as follows. Chlapaty said: “As I journey towards my 72nd birthday and look to the bright future of ADS, I believe the timing is right to begin planning for new leadership for our Company.”
Precise information about the future plans of Chlapaty was not immediately available.
ADS said: “On March 7, 2017, Joseph A. Chlapaty, the Chairman of the Board, President and Chief Executive Officer of Advanced Drainage Systems, Inc. …, notified the Company of his intention to retire from the Company effective December 31, 2017.”
On the job as CEO since 2004
Joseph A. Chlapaty joined ADS in 1980 and has served as Chairman of the Board since 2008, Chief Executive Officer since 2004 and President since 1994.
From 1980 to 1994, Chlapaty served as Vice President and Chief Financial Officer.
Before joining ADS, Chlapaty served as Corporate Accounting Manager, Assistant Treasurer, and Treasurer for Lindberg Corporation and prior to that was with Arthur Andersen LLP.
Chlapaty serves on the advisory board to Fifth Third Bank of Columbus, and is also a member or former member of several not-for-profit boards, including Nationwide Children’s Hospital, KIPP Journey Academy, Ohio Foundation of Independent Colleges, the University of Dubuque and Marietta College.
Chlapaty holds a bachelor’s degree in Business Administration from the University of Dubuque and an MBA from DePaul University.
Generally speaking, when a top manager announces to step aside with no successor in place, it’s a sign that the move was unexpected.
Signs for push-out forces
It is not completely certain what forces eventually triggered Joe Chlapaty’s move.
The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the management change.
Read the full story in the exechange report 11.2017 ($).