Coverage: Barnes & Noble fires its CEO
Barnes & Noble fired its chief executive, Demos Parneros, for violating the company’s policies, the company said without specifying the policies.
Tiffany Hsu of The New York Times had the news:
Mr. Parneros was not terminated because of “any disagreement with the company regarding its financial reporting, policies or practices or any potential fraud relating thereto,” Barnes & Noble said in a statement.
The company added that he would not receive any severance payment and that he had been removed from the board.
Mr. Parneros is the company’s fourth chief executive to depart in five years. He had been in his role for just over a year, having risen to the position from the role of chief operating officer to replace Ronald Boire. Mr. Boire had spent less than a year as chief executive before being ousted in August 2016 after board members decided he was “not a good fit for the company.”
David Pan of USA Today reported that the move came on advice of the company’s law firm:
The company did say, however, that the move came on the advice of its law firm, Paul, Weiss, Rifkind, Wharton & Garrison.
Parneros will not receive any severance payments after his departure and he is no longer a member of the company’s board of directors. He will not be replaced in the interim by an individual, but rather that his duties will be shared by several executives, including Chief Financial Officer Allen Lindstrom.
A new CEO will be sought, but no time frame was given.
New York-based Barnes & Noble’s stock slid 4 percent Tuesday in trading on the New York Stock Exchange.
While it wouldn’t cite the reason, the company was careful to say Parneros’ termination did not involve any breach of financial reporting practices or policies, the company said. It also said it sticks by its earlier financial guidance of earnings $175 million to $200 million before interest, tax, depreciation and amortization guidance for fiscal 2019.
Christine Wang of CNBC.com reported that the stock had fallen 32 percent under Parneros:
Parneros joined the company in 2016 and was named CEO in 2017. He was previously president of Staples’ North American stores and online.
In 2016, Barnes & Noble also dismissed Parneros’ predecessor, Ronald Boire. At the time, the company said Boire was not a good fit for Barnes & Noble and that it was “in the best interests of all parties for him to leave the company.”
Under Parneros’ tenure, Barnes & Noble shares shed 32 percent.
Shares were little changed in after-hours trade Tuesday. The stock has fallen more than 10 percent so far in 2018.