Flowserve CFO Karyn Ovelmen leaves abruptly

  • Signs for push-out forces
  • After less than two years on the job
  • Praise, thanks and good wishes for Ovelmen
  • Jay Roueche taking over in the interim
  • Search for a successor
  • Ovelmen said 40 words

(management-change.com) — Dallas, Texas, February 24, 2017 — Karyn Ovelmen, finance chief of Flowserve, leaves. It is an abrupt change. As announced by Flowserve Corporation in a news release on Friday, February 24, 2017, Karyn Ovelmen leaves the post as chief financial officer at the maker of pumps and valves in a surprising move after less than two years on the job, effective immediately.

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

Flowserve will undertake a search for a successor.

Ovelmen’s duties are taken over in the interim by Jay Roueche, most recently vice president, investor relations and treasurer at Flowserve Corporation.

No reason given

In the announcement, Flowserve did not explicitly explain the obviously compelling reason for Ovelmen’s sudden move, opening the door for speculation.

Alarm signal

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

“Departure”

Flowserve said: “Mr. Roueche’s appointment follows Karyn Ovelmen’s departure from the company as executive vice president and chief financial officer.”

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

Chaired by William C. Rusnack

Flowserve Corporation is chaired by William C. Rusnack.

Rusnack has served as a director since 1997 and serves as a member of the of the Audit Committee and as a member of the Organization and Compensation Committee.

CEO: Mark Blinn

Mark A. Blinn serves as CEO of Flowserve Corporation. Blinn has served as a director since August 2009 and as President and Chief Executive Officer since October 2009. Blinn previously served as the Company’s Chief Financial Officer beginning in 2004 and Senior Vice President, Latin America Operations beginning November 2007.

On the job as CFO since 2015

Karyn F. Ovelmen has served as Executive Vice President and Chief Financial Officer since June 2015.

She was previously employed as Executive Vice President and Chief Financial Officer of LyondellBasell Industries N.V., a multinational chemical company, from October 2011 to May 2015 and served on its Management Board from April 2014.

From May 2006 to September 2010, she served as an Executive Vice President and Chief Financial Officer and Member of the Executive Board of Petroplus Holdings AG (formerly, Petroplus International N.V.).

She served as an Executive Vice President and Chief Financial Officer of Argus Services Corporation from 2005 to 2006.

Prior to Argus Services Corporation, she served as Vice President of financial reporting and investor relations for Premcor Inc. from November 2003 to September 2005.

Prior to Premcor, she was employed with PricewaterhouseCoopers for 12 years.

At the time of Ovelmen’s appointment as chief financial officer at Flowserve, Mark Blinn had said: “I am delighted to welcome Karyn to the Flowserve leadership team. Karyn brings a strong track record of success, is an operationally-focused executive and has substantial international experience. Her in-depth understanding of the industries we serve and her demonstrated results from partnering with operations to drive growth while implementing significant strategic, operational and financial improvements will position her to quickly add value at Flowserve. In short, Karyn is exactly the type of leader Flowserve desired for this role, and we look forward to her many contributions in the years ahead.”

Unexpected

Generally speaking, when a top manager announces to step down with no permanent successor available, it is a signal that the change was unexpected and too early.

Signs for push-out forces

It is not completely certain what forces eventually triggered Karyn Ovelmen’s move.

The Push-out Score™ determined by management-change.com suggests that push-out forces may have contributed to the management change.

Read the full story in the management-change.com report 09.2017 ($).