Introducing C-Suite Transitions on Inside Arbitrage

One determining factor that has a huge influence on a company’s trajectory is the company’s leadership team. Whether it is a country, a local municipality or a publicly traded company, the leadership team and especially the Chief Executive at the top have a huge influence on outcomes. Given short tenures for publicly traded company CEOs and especially CFOs, we are launching a new strategy at InsideArbitrage to track not just C-Suite appointments and departures, but to understand the impact these new leaders had at their prior companies.

When we launched Inside Arbitrage a little over four years ago, we started with two event-driven strategies including merger arbitrage and insider transactions. Over time, we started tracking spinoffs, buybacks and SPACs and built several tools and screeners for these five strategies. With the launch of our sixth strategy today, we will be publishing a weekly article called “C-Suite Transitions” to discuss these management changes. Premium subscribers can access both appointments and departures in our new C-Suite Transitions tool. As always, you can adjust your settings on Inside Arbitrage to turn on or turn off notifications when we publish articles for the various strategies we report on.

Welcome to edition 1 of  C-Suite Transitions, a new weekly series that tracks appointments and departures at publicly traded companies during the prior week. We will highlight five appointments and departures by picking the largest companies from the full list of management changes.

Looking through the list today, it is interesting to see that Floor & Decor Holdings  (FND) is promoting its CFO to the role of President once it finds a new CFO. We discussed the company a few months ago in an article titled Berkshire Hathaway Paying Up For Quality: Floor & Decor. It was also interesting to see that Tapestry’s CFO was taking on the role of COO while continuing to serve as the company’s CFO. Tapestry (TPR), the owner of brands like Coach, Kate Spade and Stuart Weitzman, announced a large $1 billion buyback in November 2021 and followed it up with a larger $1.5 billion buyback announcement just six months later in May 2022. We discussed the company in one of our Buyback Wednesdays articles here.

As we continue to report on these management transitions, we will keep an eye out for any unusual activity including the sudden departure of management team members from the finance department, multiple executives leaving at once and any other patterns that may emerge from the data.

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