- After about five years in the position
- Lowell Junkins taking over in the interim
- Search for a successor
(exechange) — Washington, DC, December 7, 2017 — Tim Buzby, chief executive of Farmer Mac, leaves. It is an abrupt change. As announced by Federal Agricultural Mortgage Corporation in a news release and in a regulatory filing published on Thursday, December 7, 2017, Timothy L. (Tim) Buzby leaves his post as Chief Executive Officer at the company that was chartered by the United States federal government in 1988 to serve as a secondary market in agricultural loans after about five years in the position, effective immediately.
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.
Farmer Mac will undertake a search for a successor.
Buzby’s duties will be taken over in the interim by Lowell Junkins, currently chairman at Federal Agricultural Mortgage Corporation.
The move is a reverse generational change. Lowell Junkins is about 25 years older than Tim Buzby.
“Violations of company policies unrelated to the company’s financial and business performance”
Buzby’s sudden departure from the CEO post is explained as follows. Farmer Mac said that Junkins’ appointment “follows the board’s decision to terminate former President and Chief Executive Officer Timothy L. Buzby. The board terminated Mr. Buzby solely on the basis of violations of company policies unrelated to the company’s financial and business performance”.
Precise information about Buzby’s future plans was not immediately available.
Farmer Mac said: “On December 7, 2017, Timothy L. Buzby was terminated as President and Chief Executive Officer of Farmer Mac, effective immediately, due to violations of company policies that were unrelated to Farmer Mac’s financial or business performance.”
Share price rise since August 2015
The change follows a rise in the share price of Federal Agricultural Mortgage Corporation since August 2015.
In the position of CEO since 2012
Buzby was appointed to serve as Chief Executive Officer on October 3, 2012.
Prior to October 2012, Buzby was Farmer Mac’s Senior Vice President – Chief Financial Officer beginning April 2009 and Treasurer beginning October 2009.
Prior to April 2009, Buzby was Vice President – Controller of Farmer Mac from June 2003 through April 2009 and Acting Treasurer from October 2008 through April 2009.
Buzby graduated from James Madison University with a Bachelor of Business Administration in Accounting in 1991, earned his Certified Public Accountant license, and began his career as an auditor and financial services consultant with KPMG.
After leaving KPMG in 1997, Buzby served as the Chief Financial Officer for two regional residential mortgage companies prior to joining Farmer Mac.
At the time of Buzby’s appointment as Chief Executive Officer at Farmer Mac, Lowell L. Junkins, Chairman of the Board, said: “Tim knows and understands all aspects of Farmer Mac. He has been pivotal to the successful strengthening of Farmer Mac financially and operationally. The Board has the highest confidence that Tim is the right executive to lead Farmer Mac as it moves forward with its Congressional mission to help provide enhanced liquidity and assure credit availability for rural America.”
Read the full story in the exechange report 50.2017 ($).