Imperva CFO Terry Schmid leaves at short notice

  • Push-out Score suggests push-out forces
  • After seven years on the job
  • Thanks and good wishes for Schmid
  • Aaron Kuan taking over in the interim
  • Search for a successor

(exechange) — Redwood Shores, California, October 10, 2017 — This news came on Columbus Day. Terry Schmid, finance chief of Imperva, leaves. It is a change at short notice. As announced by Imperva, Inc. in a news release published on Monday, October 09, 2017 and in a regulatory filing published on Tuesday, October 10, 2017, Terrence J. (Terry) Schmid leaves the post as Chief Financial Officer at the cyber security software company after seven years on the job, effective November 15, 2017.

Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CFOs who departed over the past twelve months was 5.6 years, according to data compiled by exechange.

Schmid’s move comes two months after Christopher Hylen took over as CEO of Imperva, Inc.

Imperva will undertake a search for a successor.

Schmid’s duties are taken over in the interim by Aaron Kuan, currently Vice President of Financial Planning and Analysis at Imperva, Inc.

“To pursue other interests”

The imminent management change is explained as follows. Imperva said: “Mr. Kuan will replace Terry Schmid, who resigned as CFO to pursue other interests on October 3, 2017.”

The phrase “to pursue other interests” opens the door to speculation.

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

Wake-up call

Generally speaking, it is often an alarm signal for investors when a CFO leaves the post at short notice and without an understandable explanation.

“Resigned”

Imperva said: “On October 3, 2017, Terry Schmid, Chief Financial Officer of Imperva, Inc. … resigned, effective November 15, 2017 to pursue other interests. On October 8, 2017, the Board of Directors of the Company accepted Mr. Schmid’s resignation and appointed Aaron Kuan as interim Chief Financial Officer, effective November 16, 2017.”

Share price decline

The change follows a decline in the share price of Imperva, Inc. since November 2015.

Eminence holds 9.69 percent stake

Eminence Capital, LP reported a 9.69 percent stake in Imperva, Inc. as of June 29, 2017. Eminence Capital, LP is a New York based hedge fund.

Chaired by Anthony Bettencourt

Imperva, Inc. is chaired by Anthony Bettencourt.

Anthony Bettencourt has served as a board member since August 2014, and served as the Company’s president and chief executive officer from August 2014 to August 2017. He has been Chairman of the Board since October 2015.

CEO: Christopher Hylen

Christopher Hylen serves as CEO of Imperva, Inc. Christopher Hylen has served as the Company’s president and chief executive officer since August 15, 2017. Before Imperva, he served as President and Chief Executive Officer of GetGo, Inc., a wholly-owned subsidiary of Citrix Systems, Inc. from April 2016 until GetGo was separated from Citrix and subsequently acquired by LogMeIn, Inc. in January 2017.

On the job as CFO since 2010

Terrence Schmid has served as the Company’s Chief Financial Officer and Treasurer since November 2010.

Prior to that, from April 2009 to November 2010, Schmid was the Chief Financial Officer for Coremetrics, Inc. (acquired by IBM), a provider of marketing optimization software.

From November 2006 to April 2009, Schmid was the Executive Vice President and Chief Financial Officer for Enterasys Networks, Inc., a provider of wired and wireless infrastructure and security solutions.

Schmid holds a B.A. in economics from the University of San Francisco and an M.B.A. from Duke University.

Schmid will remain with the company through November 15, 2017.

Unexpected

As a general rule, when a top leader announces to step down with no permanent successor available, it is a signal that the change was unexpected and too early.

In general, possible causes for an unexpected management change can be, among others, disagreement or dispute, family reasons, health reasons and surprising new career opportunities.

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered Terry Schmid’s imminent 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 42.2017 ($).