- Push-out Score suggests push-out forces
- After almost 18 years on the job
- Praise for Becker
- Eilif Serck-Hanssen taking over
- Becker will remain as non-executive Chairman at Laureate
- Becker spoke at length and said 188 words
(exechange) — Baltimore, Maryland, September 14, 2017 — Doug Becker, chief executive of Laureate, leaves the position. As announced by Laureate Education, Inc. in a news release on Thursday, September 14, 2017, Douglas L. (Doug) Becker leaves the post as Chief Executive Officer at the network of higher education institutions after almost 18 years on the job, effective December 31, 2017.
It is the end of an era.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, only 35 percent of the CEOs who departed over the past twelve months left after more than ten years. Overall, the average tenure of those who left was 8.8 years, according to data compiled by exechange.
Becker’s duties are taken over by Eilif Serck-Hanssen, currently President and Chief Administrative Officer at Laureate Education, Inc.
Becker’s move is part of a management shake-up also involving the position of President.
Effective January 1, 2018, Ricardo Berckemeyer, current Chief Operating Officer, will assume the additional title of President.
“Transition plan, developed over several years”
The management change is explained as follows. Laureate said: “The transition plan, developed over several years by the Board of Directors and Becker, results in the promotions of Serck-Hanssen and Berckemeyer, two seasoned executives with 25 years of combined experience at Laureate. As part of this process, both executives were promoted in March 2017 to their current roles.”
Becker will remain as non-executive Chairman at Laureate
“Douglas Becker, Laureate’s Founder, Chairman, and CEO, will become the non-executive Chairman of the Board of Directors,” Laureate said.
Share price decline
The change follows a decline in the share price of Laureate Education, Inc. since August 2017.
KKR holds 10.07 percent stake
Kohlberg Kravis Roberts & Co. L.P. reported a 10.07 percent stake in Laureate Education, Inc. as of June 29, 2017. KKR is a private equity firm.
On the job as CEO since 2000
Douglas L. Becker has served as the Company’s Chairman and Chief Executive Officer since February 2000.
Becker served as President from June 2011 until September 2015.
From April 1993 until February 2000, Becker served as the Company’s President and Co-Chief Executive Officer.
Becker has been a director of the Company since December 1989.
Becker was a director of Constellation Energy Corporation from April 1999 through May 2009.
From 2004 to June 2015, Becker served as a director of Meritas LLC, a privately owned family of college preparatory schools.
Becker also serves on the boards of two nonprofit companies: International Youth Foundation, a nonprofit Global NGO focusing on youth employment, education and civic engagement, for which Becker serves as Chairman and as a member of its audit committee; and Port Discovery Children’s Museum, located in Baltimore, Maryland.
Becker founded the predecessor company to Laureate through a small acquisition in 1989, followed by the acquisition of Sylvan Learning Centers in 1991.
The company went public in 1993 and became the leader in the tutoring sector, with over 1,000 tutoring centers and more than 200,000 students.
The company launched its post-secondary education division in 1999 and subsequently divested its other holdings to concentrate on higher education, renaming itself Laureate Education, Inc. in 2004.
The company was taken private in 2007 and returned to the public markets in February 2017.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Doug Becker’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 38.2017 ($).