- Push-out Score suggests push-out forces
- After almost three years on the job
- Praise, thanks and good wishes for Owen
- Gary Yesavage taking over in the interim
- Search for a successor
- Owen spoke at length and said 108 words
(exechange) — Sugar Land, Texas, September 19, 2017 — Ted Owen, chief executive of Team, leaves. It is an abrupt change. As announced by Team, Inc. in a news release published on Monday, September 18, 2017 and in a regulatory filing published on Tuesday, September 19, 2017, Ted W. Owen leaves the post as Chief Executive Officer at the industrial services company after almost three years on the job, effective immediately.
No company wants a CEO to flame out in the first years.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, only 22 percent of the CEOs who departed over the past twelve months left within three years. Overall, the average tenure of those who left was 8.9 years, according to data compiled by exechange.
Team will undertake a search for a successor.
Owen’s duties are taken over in the interim by Gary Yesavage, a former executive at Chevron Corporation.
Already a director
Yesavage is already a director of Team. Often a board member is a last resort, someone who is turned to in desperation when a company cannot find 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, Yesavage understands the expectations and dynamics of the board and has knowledge of Team’s organization, risk-management practices and strategy.
No reason given
In the announcement, Team did not explicitly explain the obviously compelling reason for Owen’s sudden move, opening the door for speculation.
Precise information about the future plans of Owen was not immediately available.
“Stepped down/ceased to serve”
Team said: “Ted W. Owen has stepped down as Chief Executive Officer.”
Team further said: “Ted W. Owen has ceased to serve in the position of President and Chief Executive Officer and as a member of the board of directors of the Company …, effective as of September 18, 2017.”
Share price decline
The change follows a decline in the share price of Team, Inc. since December 2016.
Chaired by Louis A. Waters
Team, Inc. is chaired by Louis A. Waters.
On the job as CEO since 2014
Owen has been the Company’s President and CEO since December 2014.
In July 2014, he was appointed to the Board and named as President, CFO and Treasurer.
Prior to July 2014, Owen served as Executive Vice President, CFO and Treasurer since June 2010.
Owen joined Team in February 1998.
Following approximately 20 years of dedicated service to the Company, Owen has transitioned to the position of Special Advisor to the Chairman and to the Interim CEO, and has ceased to serve as the Company’s Chief Executive Officer, effective immediately.
In addition to stepping down as CEO, Owen has resigned from the Company’s Board of Directors.
Owen will remain with the Company in his new advisory role until he retires on December 31, 2017, to ensure a seamless transition of leadership.
Generally speaking, when a top manager announces to step down with no permanent successor in place, it’s a sign that the move was unexpected and too early.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Ted Owen’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 39.2017 ($).