How to assess

How to assess the Push-out Score™: a 10-step guide

The Push-out Score™ is a measure of the pressure on the departing executive.

To assess the Push-out Score, you will need

  • the announcement of the management change (e.g., press release, regulatory filing),
  • biographical information (departing manager and successor),
  • stock performance data (relative to relevant benchmark) and
  • information on circumstances of the management change (e.g., recent performance, outlook revisions).

To determine the Push-out Score, we conduct a meticulous analysis of the immediate and wider circumstances of the management change and, in addition, a formal and textual analysis of the management-change announcement and the corresponding regulatory filing.

There are no rigid rules. Assessments are made on a case-by-case basis.

To give three examples: An age of 58, a tenure of two years or a relatively poor share price performance may be considered appropriate or inappropriate, depending on the situation.

To avoid bias, we work with a standardized set of data and flags.

10 points are given when the manager was openly pushed out (e.g., “terminated for cause”) or when there is no reasonable doubt that the manager left the position due to pressure.

If the reason for the departure is health-related or death, a Push-out Score is not determined.

When a company convincingly explains that the departure is due to personal or business reasons that are unrelated to the firm’s activities and the manager obviously felt no pressure to leave the position, a Push-out Score is not determined.

Step 1: Form

Is the form of the announcement appropriate to the content?

Yes: 0 points
No: 1 point

Step 2: Language

Is the language in the announcement free of signs of pressure on the departing manager?

Yes: 0 points
No: 1 point

Step 3: Age

Is the age of the departing manager appropriate to the move?

Yes: 0 points
No: 1 point

Step 4: Notice period

Is the management change announced early?

Yes: 0 points
No: 1 point

Step 5: Tenure

Is the tenure of the departing manager appropriate?

Yes: 0 points
No: 1 point

Step 6: Share price

Is the share price development appropriate in relation to the relevant benchmark?

Yes: 0 points
No: 1 point

Step 7: Official reason given

Is the official reason provided appropriate and understandable?

Yes: 0 points
No: 1 point

Step 8: Circumstances

Are the circumstances of the management change positive?

Yes: 0 points
No: 1 point

Step 9: Succession

Is the succession a sign of continuity?

Yes: 0 points
No: 1 point

Step 10: Add up the points.

Depending on your personal judgment, preferences and criteria, the Push-out Score you calculate can be different from the Push-out Score determined by exechange.

The Push-out Scoring System™ is an open-source method. “Push-out Score” and “Push-out Scoring System” are trademarks belonging to exechange.

We encourage everyone to use theories and tools associated with the Push-out Score freely. We do require that when they are used publicly or for commercial purposes, they are used under license.

Frequently Asked Questions

Push-out Score™