- Push-out Score suggests push-out forces
- After almost three years on the job
- Thanks for Bowman
- Jim Nelson taking over
(exechange) — New York, July 12, 2017 — Scott Bowman, chief executive of Global Net Lease, leaves. It is a change at short notice. As announced by Global Net Lease, Inc. in a news release and in a regulatory filing published on Wednesday, July 12, 2017, Scott J. Bowman leaves the post as Chief Executive Officer at the real estate investment trust in a surprising move after almost three years on the job.
No company wants a CEO to flame out in the first years.
Bowman’s last day with GNL will be the later of August 15, 2017, and the day following the filing of the Company’s second quarter 10-Q report with the SEC.
Bowman’s duties are taken over by Jim Nelson, a former Chief Executive Officer at Orbitex Management.
Already a director
Nelson is already a director of Global Net Lease. 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, Nelson understands the expectations and dynamics of the board and has knowledge of Global Net Lease’s organization, finances and strategy.
“To spend more time with his family”
The imminent management change is explained as follows. Global Net Lease said: Scott Bowman “is stepping down to spend more time with his family.”
The phrase “to spend more time with his family” is often used in corporate announcements and opens the door to speculation.
Precise information about the future plans of Bowman was not immediately available.
Generally speaking, it is often an alarm signal for stockholders when a CEO leaves the post at short notice and without a reasonable explanation.
Global Net Lease said: “On July 10, 2017, Scott J. Bowman notified the board of directors … of Global Net Lease, Inc. … that he intends to resign from his roles as chief executive officer and president of the Company and Global Net Lease Advisors, LLC …, the Company’s advisor, with effect August 15, 2017, or as of such earlier date as the Board may request.”
“Mr. Bowman has resigned without disagreements with GNL, its Advisor or Property Manager, and has offered to make himself available to facilitate a smooth transition,” Global Net Lease 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 Global Net Lease, Inc. since July 2016.
Chaired by P.Sue Perrotty
Global Net Lease, Inc. is chaired by P.Sue Perrotty.
On the job as CEO since 2014
Bowman has been the Chief Executive Officer at Global Net Lease, Inc. since October 2014 and serves as its President since December 16, 2015.
Most recently, he served as the Group President of The Jones Group, a leading global fashion brand management company.
In this role, Bowman was responsible for global retail and international business.
Prior to this, Bowman founded Scott Bowman Associates in May 2009, a company providing global management, business development, retail market and network strategies, licensing, strategic planning and international strategy and operations support to leading retailers and consumer brands.
He has served as its Chief Executive Officer since its incorporation.
Prior to founding Scott Bowman Associates, Bowman served as President of Polo Ralph Lauren International Business Development where he was also a member of the executive committee and capital committee.
He also served as Chairman of Polo Ralph Lauren Japan from June 2007 until September 2008, and led the transformation of Polo Ralph Lauren’s business in Asia from a licensed structure to a direct, integrated subsidiary of Polo Ralph Lauren.
Before this, Bowman served as an Executive Officer of two subsidiaries of LVMH Moet Hennessy Louis Vuitton, as the Chief Executive Officer of Marc Jacobs International, and Region President of Duty Free Shoppers.
Previously, Bowman served on the board of Colin Cowie Enterprises, Stuart Weitzman and The Healthy Back.
Bowman received his B.A. from the State University of New York at Albany.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Scott Bowman’s imminent 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 29.2017 ($).