- Signs for push-out forces
- After around five years on the job
- Laud, praise and thanks for Messina
- Rob Crowl taking over
(exechange) — Mount Laurel, New Jersey, March 30, 2017 — Glen Messina, chief executive of PHH, leaves. As announced by PHH Corporation in a news release and in a regulatory filing published on Thursday, March 30, 2017, Glen A. Messina leaves the post as Chief Executive Officer at the financial services corporation in a surprising move after around five years on the job, effective June 28, 2017.
Messina’s duties are taken over by Rob Crowl, currently Chief Financial Officer at PHH Corporation.
The move is part of a management shake-up also involving the positions of Chief Financial Officer, Chief Human Resources Officer and Chief Information Officer.
“Part of its previously announced plan to reduce costs”
The management change is explained as follows. PHH said in a fairly blunt statement: “PHH Corporation … today announced changes to its leadership team as part of its previously announced plan to reduce costs as the Company expects to become smaller in size and scope resulting from its recently announced and ongoing strategic transactions.”
Precise information about the future plans of Messina was not immediately available.
PHH said: “On March 29, 2017, Mr. Glen A. Messina notified PHH Corporation … of his decision to retire from the Board of Directors of the Company …, effective at the end of the current term expiring at the Company’s 2017 Annual Meeting of Stockholders …, and not to stand for re-election as a member of the Board at the 2017 Annual Meeting.”
“Not due to any disagreement”
“The decision of Mr. Messina was not due to any disagreement with the Company or concern in respect of any matter relating to the Company’s accounting, operations, policies or practices,” PHH said.
It is a phrase that may be intended to prevent false rumors. It may also fuel further speculation and raise more questions than it answers. Such a phrase should be read very carefully. The exact wording may be insightful.
Share price decline
The change follows a decline in the share price of PHH Corporation since August 2015.
Allianz Asset Management holds 10.45 percent stake
Allianz Asset Management AG reported a 10.45 percent stake in PHH Corporation as of December 31, 2016.
Chaired by James O. Egan
PHH Corporation is chaired by James O. Egan.
Egan served as a Managing Director of Investcorp International, Inc., an alternative asset management firm specializing in private equity, hedge fund offerings and real estate and technology investments, from 1998 through 2008.
On the job as CEO since 2012
Messina has served as the Company’s President and Chief Executive Officer, and as a director, since January 3, 2012.
Messina serves as President and Chief Executive Officer for PHH Corporation and PHH Mortgage, and is a member of the Corporation’s Board of Directors.
He is responsible for the overall financial performance and strategic direction of the company. PHH Corporation is a leading provider of end-to-end mortgage solutions through its subsidiary, PHH Mortgage, one of the largest non-bank originators and servicers of residential mortgages in the United States.
Messina joined PHH as Chief Operating Officer in July 2011 and was appointed Chief Executive Officer in January 2012.
Prior to that, he spent more than 17 years with General Electric Company (GE) in a variety of senior leadership roles including, most recently, Chief Executive Officer of GE Chemical and Monitoring Solutions, a global water and process specialty chemicals services business with $1.2 billion in revenue and 3,000 employees in more than 100 countries.
Also during his tenure with GE, Messina served as Chief Financial Officer of the company’s $6.9 billion equipment services business, and CEO—and earlier CFO—of its mortgage services business.
Messina earned a Bachelor of Marketing degree from Ramapo College and an MBA in Finance from Fairleigh Dickinson University.
In 2014 he received the Ramapo College Foundation Distinguished Citizens Award, honoring his personal and professional commitment to community service and to the advancement of higher education.
Messina is a member of the Board of Directors of Catholic Partnership Schools and a long-time supporter of the American Cancer Society, as a member of the CEOs Against Cancer program and a champion of the Society’s annual Hope Gala.
Signs for push-out forces
It is not completely certain what forces eventually triggered Glen Messina’s move.
The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the management change.
Read the full story in the exechange report 14.2017 ($).