Looking at Stuart Olsen (TSX: SOX). It’s been on my radar simply because I see their name in the fitness facility that I so happen to exercise in. They also (or likely one of their subcontractors) apparently botched up the concrete job in the City of Richmond’s new swimming facility, which needless to say, is not good for them.
Here is a relevant timeline:
September 9, 2019: SOX’s CFO resigns:
Stuart Olson Inc. (TSX: SOX, SOX.DB.A) (“Stuart Olson” or the “Company”) today announced the departure of Daryl Sands, Executive Vice President and Chief Financial Officer.
“I would like to thank Daryl for his over 14 years of service and wish him well in his future endeavors”, said David LeMay, Stuart Olson’s President and Chief Executive Officer.
The Company also announced the appointment of Dean R. Beacon as interim Chief Financial Officer.
…
Stuart Olson has commenced a search for a new Chief Financial Officer.
January 8, 2020: New CFO hired.
CALGARY, Jan. 8, 2020 /CNW/ – Stuart Olson Inc. (TSX: SOX) (“Stuart Olson” or the “Company”) today announced that it has completed its search for a new Chief Financial Officer.
Effective January 9, 2020, Bharat Mahajan will assume the role of Executive Vice President and Chief Financial Officer. Mr. Mahajan replaces Dean Beacon who has held the position of interim Chief Financial Officer since his appointment was announced on September 9, 2019.
Mr. Mahajan is a Chartered Professional Accountant and brings over 28 years of senior and executive level professional experience to the Company. He has a proven track record of generating value as a Chief Financial Officer. Most recently, Mr. Mahajan held the role of Chief Financial Officer at Daseke, Inc. (“Daseke”), the largest owner and leading consolidator of specialized transportation in North America. Daseke acquired Aveda Transportation and Energy Services Inc. (“Aveda”) in 2018. At the time of the acquisition, Mr. Mahajan had been the Chief Financial Officer of Aveda and was asked to take on the same role with Daseke on completion of the transaction.
“I am pleased to welcome Bharat, as our new Executive Vice President and Chief Financial Officer. His financial expertise and extensive accounting leadership experience in public companies will strengthen our abilities to execute on our growth and diversification strategies,” said David LeMay, Stuart Olson’s President and CEO.
January 24, 2020: New CFO quits, old interm CFO comes back.
CALGARY, Jan. 24, 2020 /CNW/ – Stuart Olson Inc. (TSX: SOX) (“Stuart Olson” or the “Company”) today announced that its Executive Vice President and Chief Financial Officer, Bharat Mahajan, has notified the Company of his decision to resign and that he has accepted a different position.
The Company also announced the appointment of Dean R. Beacon as Executive Vice President and Chief Financial Officer. Mr. Beacon previously held the position on an interim basis from September 9, 2019 to January 8, 2020.
The obvious question is – what the heck happened? Two weeks into the job and he’s leaving?
When a long-time CFO exits the company, it could be for a myriad of reasons, including the fact that he/she just has done their job for king and country and wants a graceful exit – nothing to do with the underlying performance of the company. However, when a new CFO is hired and they leave 12 business days after the fact, it leads one to speculate.
A few possibilities:
a) He came in, saw some huge ethical issues, and got out;
b) He came in, the CEO did not like his personality and/or work performance (isn’t an interview process supposed to pick up on this?) and effectively told him to leave;
c) He came in, realized he was over his head, and got out?
I can’t identify a scenario where this sequence of events portends a good outcome for a publicly traded company. They have to release their audited year-end financial results by the end of March.
Unfortunately, I can’t get a borrow on the stock.
“D’oh!”……..maybe I should take my profits and run.
(d) he accepted the SOX job given his best read of the likelihood of several opportunities coming to fruition but his world shifted.
Perhaps the job he really wanted but didn’t think he would get surprised him with an offer. This happens all the time and today, for good or bad, people are more inclined to seek experiences that work best for them rather than for their employers (new or old).
I have seen this movie numerous times in my manager type roles over the years – hiring someone just to see them quit before or just after starting.
@stusclues: Good possibility, I was struggling to come up with more of them. Are there any possibilities that are actually positive for the company?
I can’t see this being a great experience for anyone. Might have little to zero bearing on future outcomes though.
I know this is well beyond the date all of this took place however another reason you need to look at is the fact that all of the senior people left LeMay since he was nemde CEO (My A….ss). The president for Buildings left, President for Industrial Left, President for VAEM left and then the next leadership team, COO Buildings, President Industrial etc. etc etc. all left again. Trust issues with LeMay and his Personal Assistant Joette DeCore. Seasoned people just don’t trust these two people and they were playing people against each other. NO TRUST at All.