C-Suite Transitions – CEO Transition at Five9

Sudden Departures

  1. Zscaler (ZS) Amit Sinha, informed the company of his intention to resign from his position as President of the company effective as of October 21, 2022.
  2. Greenidge Generation Holdings (GREE) announced that Jeffrey Kirt is to resign from his roles as CEO and Director, effective October 7, 2022.
  3. Michael A. Holland, Senior Vice President, and Chief Technology Officer, of Kirkland’s (KIRK) announced his intent to resign effective October 28, 2022.
  4. Adamis Pharmaceuticals (ADMP) announced that Ronald B. Moss, M.D., notified the company that he was resigning from his role as the Chief Medical Officer effective October 14, 2022.

CEO Transition at Five9 (FIVN)

Five9, a cloud software provider for contact centers in the United States and internationally, fell more than 20% on Monday, October 10, 2022, when CEO Rowan Trollope announced his resignation. Troloppe has been the CEO of Five9 since 2018 and will now be assuming the role of CEO at a privately held pre-IPO company outside of the cloud contact center software as a service (CCaaS)  space.

Mike Burkland, long-time Chairman and former CEO of Five9, will return to the CEO position. This transition will be effective on November 28, 2022. In 2017, Burkland suffered a cancer diagnosis, leading to his resignation as Five9’s CEO. Burkland had guided the business through its IPO in 2014 and grown Five9 into one of the CCaaS industry’s fastest-growing public firms.

In 2021, Zoom Video Communications’ (ZM) had proposed to acquire Five9 in an all stock deal that fell through, after failing to receive shareholder approval. According to the deal agreement, Five9 was expected to be an operating unit of Zoom and Rowan Trollope would become a President of Zoom and continue as CEO of Five9, reporting to Eric Yuan. We wrote in detail about this deal in our Merger Arbitrage Mondays posts here and here.

C-Suite Transitions at SunPower Corporation (SPWR) and Nordstrom (JWN)

Founded in 1985 and  headquartered in San Jose, California, SunPower (SPWR) is an American manufacturer of photovoltaic solar energy generation systems and battery energy storage solutions. The company announced Eileen Evans as its new Chief Legal Officer. Evans brings to SunPower more than 25 years of legal and business experience in the technology sector. Evans has held roles at Hewlett Packard Enterprise and Hewlett-Packard Company  as vice president and deputy general counsel and as associate general counsel at Oracle Corporation and Sun Microsystems. She most recently served as chief legal and corporate affairs officer at Redaptive, a tech-enabled sustainability-as-a-service company and prior to that as deputy general counsel at Micro Focus International.

Seattle based department store retailer Nordstorm (JWN) reported that Edmond Mesrobian, the company’s Chief Technology and Information Officer, informed the company that he was stepping down from his position. His last day with the Company will be October 14, 2022. Mesrobian joined Nordstrom in 2018. He formerly served as Expedia Group’s Chief Technology Officer.

Nordstorm adopted a poison pill last month after Mexican department store retailer Liverpool acquired 9.9% of the company’s stock as an investment for their dormant funds.

According to Forbes, “Nordstrom’s board of directors indicated that the plan was adopted to protect the interests of the company whenever an unwelcome investor is seeking to accumulate sufficient stock to gain control of the company. However, management indicated that the plan was not adopted in response to any action.

Welcome to edition 10 of  C-Suite Transitions, a new weekly series on InsideArbitrage that tracks appointments and departures at publicly traded companies during the prior week. We highlight five appointments and departures each week by picking the largest companies from the full list of management changes.

You can find all the appointments and departures listed below in our  C-Suite Transitions tool.

Appointments

1. Five9, Inc. (FIVN): $54.65

Five9 announced that  Mike Burkland, long-time Chairman and former CEO of Five9, has been appointed to the CEO position. This transition will be effective on November 28, 2022.

MarketCap: $3.83B Avg. Daily Volume (30 days): 1,453,610 Revenue (TTM): $700.09M
Net Income Margin (TTM): -11.70% ROE (TTM): -40.20% Net Debt: $290.31M
P/E: -45.78 Forward P/E: 30.86 EV/EBIDTA (TTM): N/A
P/S (TTM): 5.36 P/B (TTM): 15.63 52 Week Range: $53.63 – $168.56

2. XPO Logistics Inc (XPO): $48.92

XPO Logistics announced the appointment of Carl Anderson as Chief Financial Officer, effective November 8, 2022.

MarketCap: $5.65B Avg. Daily Volume (30 days): 1,633,505 Revenue (TTM): $13.34B
Net Income Margin (TTM): 5.20% ROE (TTM): 2.94% Net Debt: $3.3B
P/E: 7.30 Forward P/E: 9.26 EV/EBIDTA (TTM): 6.61
P/S (TTM): 0.43 P/B (TTM): 3.31 52 Week Range: $41.67 – $88

3. Light & Wonder Inc (LNW): $46.17

Light & Wonder announced that its Board of Directors has named Matt Wilson as President and Chief Executive Officer and a member of the company’s Board of Directors, effective immediately.

MarketCap: $4.34B Avg. Daily Volume (30 days): 913,661 Revenue (TTM): $2.30B
Net Income Margin (TTM): 156.13% ROE (TTM): 7.69% Net Debt: $3.03B
P/E: -64.04 Forward P/E: 16.34 EV/EBIDTA (TTM): 11.99
P/S (TTM): 1.96 P/B (TTM): N/A 52 Week Range: $40.10 – $90.20

4. TopBuild Corp (BLD): $170.84

Effective on October 10, 2022, TopBuild appointed Joseph Viselli it’s Vice President and Chief Operating Officer.

MarketCap: $5.71B Avg. Daily Volume (30 days): 309,113 Revenue (TTM): $4.35B
Net Income Margin (TTM): 9.93% ROE (TTM): 26.87% Net Debt: $1.65B
P/E: 13.52 Forward P/E: 11.07 EV/EBIDTA (TTM): 9.72
P/S (TTM): 1.34 P/B (TTM): 3.29 52 Week Range: $150.72 – $284.07

5. Ryman Hospitality Properties  (RHP): $78.67

Ryman Hospitality Properties, a Delaware corporation, announced Mark Fioravanti will assume the position of Chief Executive Officer of the company effective January 1, 2023

MarketCap: $4.34B Avg. Daily Volume (30 days): 385,678 Revenue (TTM): $1.44B
Net Income Margin (TTM): 1.44B ROE (TTM): 8.31% Net Debt: $2.44B
P/E: 393.62 Forward P/E: N/A EV/EBIDTA (TTM): 58.31
P/S (TTM): 3.00 P/B (TTM): N/A 52 Week Range: $31.59 – $80.95

Departures

1. Reliance Steel & Aluminum Co. (RS): $213.95

Reliance Steel & Aluminum announced that James D. Hoffman will retire as the company’s Chief Executive Officer effective December 31, 2022.

MarketCap: $11.04B Avg. Daily Volume (30 days): 511,180 Revenue (TTM): $17.00B
Net Income Margin (TTM): 11.25% ROE (TTM): 30.67% Net Debt: $43.63B
P/E: 6.06 Forward P/E: 8.14 EV/EBIDTA (TTM): 4.32
P/S (TTM): 0.68 P/B (TTM): 1.61 52 Week Range: $139.92 – $209.72

2. Five9, Inc.  (FIVN): $54.65

Five9, Inc. (FIVN), announced that Chief Executive Officer Rowan Trollope has resigned as CEO and from the Board of Directors and accepted another role as CEO of a privately held pre-IPO company outside of the CCaaS space, effective on November 28, 2022.

MarketCap: $3.83B Avg. Daily Volume (30 days): 1,453,610 Revenue (TTM): $700.09M
Net Income Margin (TTM): -11.70% ROE (TTM): -40.20% Net Debt: $290.31M
P/E: -45.78 Forward P/E: 30.86 EV/EBIDTA (TTM): N/A
P/S (TTM): 5.36 P/B (TTM): 15.63 52 Week Range: $53.63 – $168.56

3. Zscaler, Inc. (ZS): $147.63

Zscaler (ZS) Amit Sinha, informed the company of his intention to resign from his position as President of the company effective as of October 21, 2022.

MarketCap: $21.28B Avg. Daily Volume (30 days): 2,490,586 Revenue (TTM): $1.09B
Net Income Margin (TTM): -35.77% ROE (TTM): -70.82% Net Cash: $680M
P/E: -53.69 Forward P/E: 135.14 EV/EBIDTA (TTM): -68.97
P/S (TTM): 20.30 P/B (TTM): 39.22 52 Week Range: $125.12 – $376.11

4. Nordstrom, Inc. (JWN): $18.55

On September 30, 2022, Edmond Mesrobian, the company’s Chief Technology and Information Officer, informed the company that he was stepping down from his position. His last day with the company will be October 14, 2022.

MarketCap: $2.97B Avg. Daily Volume (30 days): 6,052,381 Revenue (TTM): $15.79B
Net Income Margin (TTM): 2.60% ROE (TTM): 88.08% Net Debt: $4.13B
P/E: 7.48 Forward P/E: 6.72 EV/EBIDTA (TTM): 5.41
P/S (TTM): 0.19 P/B (TTM): 4.43 52 Week Range: $16.14 – $35.52

5. Everbridge Inc (EVBG): $60.80

Ajay Nigam, Senior Vice President and Chief Product Officer of Everbridge, will be leaving the company effective on November 30, 2022, to pursue other business opportunities.

MarketCap: $1.19B Avg. Daily Volume (30 days): 686,002 Revenue (TTM): $402.94M
Net Income Margin (TTM): -23.44% ROE (TTM): -28.25% Net Debt: $351.57M
P/E: -12.37 Forward P/E: 33.33 EV/EBIDTA (TTM): -34.50
P/S (TTM): 2.91 P/B (TTM): 4.52 52 Week Range: $24.10 – $164

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