- Signs for push-out forces
- After about six years on the job
- Laud, praise and thanks for Ravichandran
- Search for a successor
- Ravichandran spoke at length and said 119 words
(exechange) — Burlington, Massachusetts, April 17, 2017 — This news came the day after Easter Sunday. Hari Ravichandran, chief executive of Endurance, leaves. As announced by Endurance International Group Inc. in a news release and in a regulatory filing published on Monday, April 17, 2017, Hari K. Ravichandran leaves the post as Chief Executive Officer at the web hosting company in a surprising move after about six years on the job.
Ravichandran will remain CEO and serve as a Board member while the Company conducts a search to identify his successor.
“Given the … SEC investigation regarding non-GAAP metrics” – “The Board decided, and Mr. Ravichandran agreed”
The management change is explained as follows. Endurance said in a fairly blunt statement: “Given the significant expansion of the business, the substantial focus on free cash flow generation and risk management, and the previously disclosed SEC investigation regarding non-GAAP metrics, the Board decided, and Mr. Ravichandran agreed, to accelerate the succession planning. They believe that finding a CEO with a breadth of experience growing complex organizations will enable Endurance to reach its next set of milestones.”
Precise information about the future plans of Ravichandran was not immediately available.
“CEO transition plan”
Endurance said: “Endurance … today announced that its Board of Directors and its Chief Executive Officer Hari Ravichandran have adopted a CEO transition plan.”
Share price decline
The change follows a sharp decline in the share price of Endurance International Group Inc. since July 2015.
Warburg Pincus holds 37.14 percent stake
Warburg Pincus LLC reported a 37.14 percent stake in Endurance International Group Inc. as of December 31, 2016. Warburg Pincus is a private equity firm.
Chaired by James C. Neary
Endurance International Group Inc. is chaired by James C. Neary.
James C. Neary has served as Endurance International Group’s chairman since December 2011.
On the job as CEO since 2011
Ravichandran founded Endurance International Group Holdings, Inc. in 1997 and has been its Chief Executive Officer since March 2011.
As founder and CEO of Endurance International Group, Hari Ravichandran’s goal is to empower small business owners to harness the promise and the power of the web.
A former small business owner who grew his company into a worldwide success, Ravichandran has a deep-rooted passion for helping entrepreneurs.
Ravichandran oversees all aspects of the business, but focuses most of his time on strategy and growth initiatives within Endurance, leading the development of products and technology that power customers’ online web presence, email marketing, mobile business solutions, and more.
Ravichandran has founded a variety of other successful businesses focused on business-process outsourcing and web security, and he actively participates as a board member for a number of growing companies.
Ravichandran holds an M.B.A. from the Wharton School at University of Pennsylvania.
He earned a B.S. in Computer Engineering from Mississippi State and studied Electrical Engineering at Stanford.
He is involved with various charities that are focused on projects in rural Southeast Asia.
Generally speaking, when a top leader announces to step down with no successor available, it’s a sign that the move was unexpected and too early.
Signs for push-out forces
It is not completely certain what forces eventually triggered Hari Ravichandran’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 17.2017 ($).