Providence CEO Jim Lindstrom leaves abruptly

  • After about two years in the position
  • Praise and thanks for Lindstrom
  • Carter Pate taking over in the interim
  • Search for a successor
  • Lindstrom spoke at length and said 94 words

(exechange) — Stamford, Connecticut, November 15, 2017 — Jim Lindstrom, chief executive of Providence, leaves. It is an abrupt change. As announced by The Providence Service Corporation in a news release and in a regulatory filing published on Wednesday, November 15, 2017, James M. (Jim) Lindstrom leaves the post as Chief Executive Officer at the social assistance company after about two years in the position, 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, the average tenure of the CEOs who departed over the past twelve months was 8.7 years, according to data compiled by exechange. Only 22 percent of the CEOs who departed over the past twelve months left the position within three years.

Providence will undertake a search for a successor.

Lindstrom’s duties are taken over in the interim by Carter Pate, currently Founder and CEO at Carter Pate, LLC.

The fact that Lindstrom’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.

“The time was right for a change in leadership”

Lindstrom’s sudden departure from the post of CEO is explained as follows. Chris Shackelton, Chairman of the Board of Directors, said: “As we look to the future, Jim determined, and the Board agreed, that the time was right for a change in leadership.”

Precise information about the future plans of Lindstrom was not immediately available.

Alarm signal

Generally speaking, it is often an alarm signal for stockholders when a CEO leaves the post abruptly and without a reasonable explanation.

“Resigned”

Providence said: “Mr. Pate replaces James Lindstrom, who has resigned as President and Chief Executive Officer. Mr. Lindstrom has also resigned from the Company’s Board of Directors.”

Providence further said: “On November 15, 2017, James M. Lindstrom, President, Chief Executive Officer and Director of The Providence Service Corporation …, notified the Company of his decision to resign from his positions as President and Chief Executive Officer and member of the Board of Directors … of the Company, effective November 15, 2017.”

Share price rise since November 2016

The change follows a rise in the share price of The Providence Service Corporation since November 2016.

Chaired by Chris Shackelton

The Providence Service Corporation is chaired by Chris Shackelton.

Christopher Shackelton has served as the Company’s director and Chairman since 2012.

Shackelton served as an Interim Chief Executive Officer of The Providence Service Corporation from June 1, 2015 to August 6, 2015.

In the position of CEO since 2015

James M. Lindstrom has been the Chief Executive Officer and President of The Providence Service Corporation since August 6, 2015.

Lindstrom served as the Company’s Chief Executive Officer and President.

From January 2015 until his appointment as director, CEO and President, Lindstrom served as the Company’s Executive Vice President and Chief Financial Officer.

Before joining the Company, he served as Chairman of the Board, President and Chief Executive Officer of Integrated Electrical Services, Inc., or IES, a provider of industrial products and infrastructure services from October 2011 through January 2015.

He also served as President and Chief Executive Officer of IES since October 2011 and previously served as Interim President and Chief Executive Officer of IES since June 2011, and as a member of the Board of Directors of IES since May 2010 and Chairman of the Board since February 2011.

Over a 20 year-career, Lindstrom has led or invested in major turnarounds and companies experiencing strategic transformations in a variety of industries, including the financial services, energy, business services and manufacturing industries.

Prior to joining IES, Lindstrom was employed by Tontine Associates, LLC, a private investment fund and an affiliate of IES’s majority stockholder, from January 2006 until October 2011.

Lindstrom has prior experience in private equity, investment banking and operations and has served on multiple private and public boards of directors.

He received a bachelor’s degree from Colby College and a master of business administration degree from the Tuck School of Business at Dartmouth.

At the time of Lindstrom’s appointment as Chief Executive Officer at Providence, Shackelton had commented: “On behalf of Providence’s Board of Directors, we are excited to appoint Jim to the position of CEO.  Jim is a highly respected leader with a strong track record of delivering exceptional financial, operational and shareholder performance across a variety of industries.  Having had the privilege of working closely with Jim over the past few months, I have been particularly impressed with the robust and collaborative relationships he has forged throughout our organization, specifically the partnerships he has built with our vertical CEOs.  Jim’s management approach, through our holding company structure, positions Providence to attract and develop elite leaders, and as a result, maintain the tremendous momentum and enthusiasm driving our businesses.”

At the time of his appointment as Chief Executive Officer at Providence, Lindstrom had commented: “Providence is a unique company that operates with both excellence and integrity.  I am honored to have the opportunity to help build upon the Company’s success of recent years.  I look forward to working in close partnership with our vertical CEOs to further deliver superior solutions for our clients as well as shareholder value well into the future.”

Read the full story in the exechange report 47.2017 ($).