Making Sense of MANH's C-Suite Shake-Up
An investor fireside chat helped calm some anxieties about what appeared to be a sudden CEO shift at Manhattan Associates.
What's the right amount of notice to give the market for a major transition in the C-suite? Supply chain and inventory software provider Manhattan Associates (NASDAQ: MANH) announced the retirement of now-former CEO Eddie Capel just two days before changes went into effect. After shares fell 11% on the unexpected announcement on Monday, Feb. 10, the company hosted an investor webinar on Wednesday to take questions about what's next for Capel and to introduce the new CEO at the helm, Eric Clark. Here's what investors shouldn't miss.
As announced earlier this week, Capel is retiring from his roles as CEO and president and shifting to a seat on the board as executive vice chairman. Additionally, with Chairman John J. Huntz Jr. expected to depart the board in May, Capel would then assume the role of executive chairman, continuing his 25 years of tenure at the company.
Capel described how succession planning had been an ongoing discussion with the board for roughly a decade, and an exhaustive search for the next CEO started in earnest about two and a half years ago. When asked why Manhattan Associates didn't set expectations months or years ago, while the search was ongoing, he said that management wanted to have a candidate in place before making any announcement. As Capel put it, an early announcement would have been a distraction for employees, especially without a hard deadline in place.
