Oi CEO Marco Schroeder leaves abruptly

  • Push-out Score suggests push-out forces
  • After less than a year and a half in the position
  • Praise and thanks for Schroeder
  • Eurico de Jesus Teles Neto taking over in the interim

(exechange) — Rio De Janeiro, Brazil, November 24, 2017 — Marco Schroeder, chief executive of Oi, leaves. It is an abrupt change. As announced by Oi S.A. in a news release on Friday, November 24, 2017, Marco Norci Schroeder leaves the post as Chief Executive Officer at the largest telecommunications company in Brazil and South America after less than a year and a half in the position, effective immediately.

No company wants a CEO to flame out in the first years.

Schroeder’s duties are taken over in the interim by Eurico de Jesus Teles Neto, most recently Chief Legal Officer at Oi S.A.

No reason given

In the announcement, Oi did not explicitly explain the obviously compelling reason for Schroeder’s sudden move, leaving room for speculation.

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

Wake-up call

Generally speaking, it is often an alarm signal for investors when a CEO leaves the position abruptly and without an understandable explanation.

“Resignation”

Oi said: “Oi S.A. – In Judicial Reorganization …, in compliance with Article 157, paragraph 4, of Law No. 6,404/76 and pursuant to CVM Instruction No. 358/02, hereby informs its shareholders and the market in general that on this date Mr. Marco Norci Schroeder presented his resignation as Chief Executive Officer of the Company.”

Share price decline

The change follows a decline in the share price of Oi S.A. since January 2013.

Chaired by José Mauro Mettrau Carneiro da Cunha

Oi S.A. is chaired by José Mauro Mettrau Carneiro da Cunha.

Cunha, born on December 4, 1949, has been the Chairman of the Board of Directors of Oi S.A. since 2009.

In the position of CEO since 2016

Marco Norci Schroeder has been the Chief Executive Officer of Oi S.A. since June 10, 2016.

Marco Schroeder started his career at Oi as Controllership Officer between 2002 and 2011.

In 2014, he returned to the Company as International Financial Officer, having held the position of CFO at PT Portugal since then.

He consolidated his career in the telecommunications market and worked at Contax Participações, NET Serviços de Comunicações and RBS.

He has a degree in Economics from the Federal University of Rio Grande do Sul (UFRGS) and a specialization degree from the Harvard Business School and Wharton School of the University of Pennsylvania.

Unplanned

As a general rule, when a top leader announces to step aside with no permanent successor available, it is a sign that the move was unplanned and too early.

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered Marco Schroeder’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 48.2017 ($).