- Walmart executive, Ashley Buchanan, joins Michaels as the new CEO.
- Buchanan is to replace the current CEO Mark Cosby on January 6th.
- Cosby will remain as the co-CEO until April 2020.
- Michaels CFO, Denis Paulonis, also announced resignation from Michaels.
- 2019 records the highest CEO turnover in the first 11 months.
- Surging 32% on Friday, Michaels is still trading 40% lower than the start of the year.
The Texas-based specialty retail company, Michaels, surged 32% in the stock market on Friday following an announcement that Walmart executive, Ashley Buchanan, will be taking over as the company’s new CEO. Buchanan is to replace Mark Cosby in his role as the current Chief Executive of Michaels.
Cosby To Remain As The Co-CEO Untill April
The company further stated that Cosby will stick around as a co-CEO of the company until April 2020. Buchanan, on the other hand, will be joining Cosby on the hot seat on January 6th. Cosby has only served Michaels as the CEO for two months. The executive, however, will keep his seat on the board following his removal as the CEO in April.
As per the sources, the agreement entails $1.2 million in base salary for Buchanan plus a $3.7 million signing bonus. The board also offered half a million options and 795,000 of restricted stock shares. As of Thursday, the restricted shares were valued at $4.8 million.
Cosby was announced as the interim chief executive for Michaels in February 2019. Following a performance evaluation, he was offered a permanent position as the CEO on October 21st. Other credentials to his name include presiding North American business for Office Depot.
In separate news, Michaels also announced that the current Chief Financial Officer, Denise Paulonis, will be departing from the company by the end of January. Having served Michaels in the role of CFO for five years, the company wished the best of luck to Paulonis who will be joining a different company in the upcoming months.
2019 Records The Highest CEO Turnover In The First 11 Months
According to the U.S first executive outplacement firm, Challenge, Gray, and Christmas, 2019 has noted the highest CEO turnover. As of November, 1,480 chief executives in total have departed from their companies that marks the highest turnover ever recorded for the first 11 months in any given year. The firm started keeping a record of CEO turnovers in 2002 and recorded its highest figure in 2008. Amidst the economic crisis, the country saw 1,484 CEOs leave their companies in 2008.
Michaels stock rose to as high as $8.78 on Friday. Losing some of the gains later in the day, the stock closed for the week at an even $8.00 per share. In terms of year to date performance, Michaels is still trading around 40% lower as compared to the price at which it started the year 2019.