- Signs for push-out forces
- After almost eleven years on the job
- Praise, thanks and good wishes for Hook
- Joe Dziedzic taking over in the interim
- Search for a successor
- Hook spoke at length and said 96 words
(exechange) — Frisco, Texas, March 27, 2017 — Tom Hook, chief executive of Integer, leaves. It is an abrupt change. As announced by Integer Holdings Corporation in a news release and in a regulatory filing published on Monday, March 27, 2017, Thomas J. (Tom) Hook leaves the post as Chief Executive Officer at the medical device outsource manufacturer in a surprising move after almost eleven years on the job, effective immediately.
It is the end of an era.
Integer will undertake a search for a successor.
Hook’s duties are taken over in the interim by Joe Dziedzic, a former Chief Financial Officer at The Brink’s Company.
Already a director
Dziedzic is already a director of Integer. Often a board member is a last resort, someone who is turned to in desperation when a company can’t find other suitable candidates. On the other hand, 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, Dziedzic understands the expectations and dynamics of the board and has knowledge of Integer’s organization, finances and strategy.
“The Board and Tom agree that now is the right time”
A reason for the sudden change was not explicitly given. Bill Sanford, Chairman of the Board of Integer said: “Given our sound financial footing and the substantial completion of the Lake Region Medical integration, the Board and Tom agree that now is the right time to transition leadership for Integer’s next period of growth.”
Precise information about the future plans of Hook was not immediately available.
Generally speaking, it is often an alarm signal for shareholders when a CEO leaves the post abruptly and without a reasonable explanation.
Integer said: “Thomas J. Hook has stepped down as Integer’s President & Chief Executive Officer, effective immediately.”
Share price rise since October 2016
The change follows a rise in the share price of Integer Holdings Corporation since October 2016.
KKR holds 9.34 percent stake
Kohlberg Kravis Roberts & Co. L.P. (KKR) reported a 9.34 percent stake in Integer Holdings Corporation as of December 31, 2016. KKR is a private equity firm.
Chaired by Bill R. Sanford
Integer Holdings Corporation is chaired by Bill R. Sanford.
Sanford is the Founder and Chairman of Symark LLC, a company that focuses on the development and commercialization of biosciences systems.
On the job as CEO since 2006
Hook has been the Chief Executive Officer of Integer Holdings Corporation since August 2006 and has been its President since May 2005.
Prior to joining Greatbatch, Hook was President of CTI Solutions Group and General Manager of Functional and Molecular Imaging for General Electric Medical Systems.
Earlier in his career, he worked for the Van Owen Group Acquisition Company and Duracell, Inc.
Hook will continue to serve as a director of Integer until the 2017 Annual Meeting of Stockholders, but he will not stand for re-election to the Board.
As a general rule, when a top manager announces to step aside with no permanent successor in place, it is a sign that the change was unexpected and too early.
Signs for push-out forces
It is not completely certain what forces eventually triggered Tom Hook’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 14.2017 ($).