- Push-out Score suggests push-out forces
- After almost six years on the job
- Accolades, praise and good wishes for Oh
- Randy Howard taking over in the interim
- Search for a successor
- Oh kept it short and said 18 words
(exechange) — Ames, Iowa, July 05, 2017 — This news came the day after Independence Day. Dan Oh, chief executive of REG, leaves. It is an abrupt change. As announced by Renewable Energy Group, Inc. in a news release on Wednesday, July 05, 2017, Daniel J. (Dan) Oh has already left the post as Chief Executive Officer at the producer of biomass-based diesel in a surprising move after almost six years on the job, effective July 03, 2017.
REG will undertake a search for a successor.
Oh’s duties are taken over in the interim by Randy Howard, a former senior executive at Unocal Corporation.
Already a director
Howard is already a director of REG. 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, Howard understands the expectations and dynamics of the board and has knowledge of REG’s organization, finances and strategy.
“Taking REG to the next level”
A reason for the sudden change was not explicitly given. Jeff Stroburg, Chairman of the REG Board of Directors, said: “We … firmly believe Randy Howard is an ideal choice to begin taking REG to the next level.”
Precise information about the future plans of Oh was not immediately available.
REG said: “Daniel J. Oh has resigned as President and Chief Executive Officer and as a member of the Company’s Board of Directors. The resignation was effective July 3, 2017.”
Share price rise since February 2017
The change follows a rise in the share price of Renewable Energy Group, Inc. since February 2017.
Carlson holds 10.11 percent stake
Carlson Capital L.P. reported a 10.11 percent stake in Renewable Energy Group, Inc. as of March 30, 2017. Carlson is a hedge fund.
Chaired by Jeffrey Stroburg
Renewable Energy Group, Inc. is chaired by Jeffrey Stroburg.
Jeffrey Stroburg holds more than 25 years of experience in the petroleum and agriculture production industries, including five years as the Chief Executive Officer of Renewable Energy Group and eight years as chairman of its board.
On the job as CEO since 2011
Oh has been the Chief Executive Officer at Renewable Energy Group, Inc. since September 2011 and has been its President since April 2009.
For more than 25 years, Daniel Oh has led a diverse range of business and management organizations.
Oh served as President and Chief Executive Officer, Renewable Energy Group, Inc. (REG).
Prior to REG, Oh served as Vice President and as a member of senior management at ABG, Inc. (ABG), an agribusiness consulting and services firm, where he was responsible for management consulting and market research practices.
Prior to ABG, Oh was a leader in the Corporate Finance and Investment Banking area of Corporate Strategy and Business Development Group at Eli Lilly and Company, a global pharmaceutical company.
Oh has also served as a consultant with McKinsey & Company.
For 11 years, Oh served as an infantry officer in the U.S. Army, including Operation Desert Storm, and held the rank of Major.
Oh is a graduate of the United States Military Academy earning a Bachelor of Science with a concentration in economics.
He also holds an M.B.A. from the University of Chicago with concentrations in finance, accounting and strategic management.
Oh currently serves as Treasurer and a member of the Executive Committee for the Ames Economic Development Commission; he is on the Board of Directors for Central Iowa’s Cultivation Corridor; Chairman for the Executive Advisory Council for MBA Programs, Iowa State University, College of Business; serves as a member of the Future Ready Iowa Alliance; and previously served as Chairman for the Iowa Biodiesel Board.
Generally speaking, when a top leader announces to step down with no permanent successor in place, it’s a signal that the move was unexpected and too early.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Dan Oh’s sudden 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 28.2017 ($).