- Push-out Score suggests push-out forces
- After about ten years in the position
- Accolades, praise and thanks for Smith
- Ryan Schneider taking over
- Smith spoke at length and said 109 words
(exechange) — Madison, New Jersey, October 23, 2017 — Richard Smith, chief executive of Realogy, leaves. As announced by Realogy Holdings Corp. in a news release and in a regulatory filing published on Monday, October 23, 2017, Richard A. Smith leaves the post as Chief Executive Officer at the residential real estate services company after about ten years in the position, 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 37 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 8.9 years, according to data compiled by exechange.
Smith’s duties are taken over by Ryan Schneider, most recently President of the Card division at Capital One Financial Corporation.
The fact that Smith’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
“The right time to accelerate my retirement”
The management change is explained as follows. Smith said: “I was initially prepared to stay on into 2018 to help facilitate a transition of responsibilities, but I am so confident in Ryan’s proven leadership abilities and the Company’s clear strategic growth plans that I believe now is the right time to accelerate my retirement to the end of this year.”
Precise information about the future plans of Smith was not immediately available.
In March 2017, Realogy’s board had offered Smith a two-year contract while it formalized a succession plan for the company, a process he was part of.
Realogy said: “Richard A. Smith, Realogy’s Chairman and Chief Executive Officer, who worked hand-in-hand with a special committee of the Board on the search for his successor, will retire, also effective December 31, 2017, after 21 years of exceptional leadership with the Company.”
Share price decline
The change follows a decline in the share price of Realogy Holdings Corp. since July 2015.
In the position of CEO since 2007
Richard A. Smith has served as the Company’s President and Chief Executive Officer since November 13, 2007, as Chairman of the Board since March 2012, and as a Director since the Company’s separation from Cendant in July 2006.
Prior to November 13, 2007, he served as the Company’s Vice Chairman of the Board and President.
Smith was Senior Executive Vice President of Cendant from September 1998 until the Company’s separation from Cendant in July 2006 and Chairman and Chief Executive Officer of Cendant’s Real Estate Services Division from December 1997 until the Company’s separation from Cendant in July 2006.
Smith was President of the Real Estate Division of HFS from October 1996 to December 1997 and Executive Vice President of Operations for HFS from February 1992 to October 1996.
Under the terms of his employment agreement, Smith serves as a member of the Board of Realogy.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Richard Smith’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 44.2017 ($).