Good morning. Tyson Foods is back in the news, not for its chicken, but because of the second arrest of its CFO in less than two years.
John R. Tyson, 34, son of company chairman John H. Tyson and the great-grandson of company founder John W. Tyson, was arrested by the University of Arkansas Police Department around 1:30 a.m. on Thursday and charged for driving under the influence, careless driving, and improperly making a U-turn, according to local news reports.
A Tyson Foods representative confirmed in an emailed statement that the CFO has since been suspended from all duties, effective immediately, and that Curt Calaway, SVP of finance, corporate development, and treasurer, has been named interim CFO.
Tyson’s first high-profile arrest was in November 2022, after a woman in Fayetteville, Ark., called the police when she found him—whom she did not know—in a bed in her home. The incident occurred just weeks after Tyson took over as EVP and CFO. During his first earnings call as CFO later that November, he said he was “embarrassed” and apologized.
The company’s board said in a statement a month later that it “supports Mr. Tyson and has continued confidence in his ability to lead Tyson Foods as CFO.” Tyson pleaded guilty to two misdemeanor charges in January 2023, paying fines and court fees.
‘This is like an episode of “Succession”‘
Tyson Foods may have been family founded, but it’s also a public Fortune 500 company and Tyson’s arrest is proving a “pivotal moment” for its corporate governance framework, according to James Bailey, a professor at the George Washington University School of Business. “Given the company’s public status and the family’s control, it is crucial to reinforce trust,” Bailey told me.
John M. Veitch, dean for the School of Business and Management at Notre Dame de Namur University, put it this way: “Whatever ‘robust governance measures’ were put in place after the CFO’s first drunk scandal, they don’t seem to have worked.”
The company didn’t appoint an interim CFO after Tyson’s arrest in 2022, so does this mean the board is considering a permanent replacement? “Internally or externally, I’d suggest they conduct a qualified search,” said Shawn Cole, president and founding partner of Cowen Partners, a C-suite-focused executive search firm.
Calaway, who’s worked at the company for almost 20 years, “would be the safest bet for the board to name as CFO,” Cole added. “Given that Tyson is a closely held and tightly controlled family business, it is likely that Mr. Calaway has been playing an outsized role at the company for years.”
The board needs to communicate its intentions with Calaway to mutually set appropriate expectations, and to help with any day-to-day matters, said Cole, who added: “Staff and shareholders might be relieved by this transition, frankly. John Tyson needs to get help and I wish him and his family the best; this is like an episode of Succession.”
Have a good weekend.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Some notable moves this week:
Sarah Friar was named CFO at OpenAI, an AI research and deployment company. Friar most recently served as CEO of Nextdoor, and under her leadership, it became a public company in 2021. She was previously CFO at Square, now known as Block Inc., and also worked at Goldman Sachs, McKinsey, and Salesforce.
Angie Park was promoted to CFO at Accenture, effective Dec. 1. Park succeeds KC McClure, who is retiring after 36 years of service with Accenture. McClure will step down as CFO and member of the Global Management Committee on Nov. 30, and retire on March 31. Park, with Accenture for almost 30 years, currently leads its Business and Commercial Finance division.
Gary W. Ferrera was named CFO at MoneyGram International, Inc., a global financial technology company, effective June 10. Ferrera succeeds Larry Angelilli, who recently announced his retirement. Ferrera most recently served as CFO of Driven Brands. Before that role, he served as CFO of both Skillsoft and Cardtronics.
Sarah Oughtred was named CFO at FIGS, Inc. (NYSE: FIGS), a medical apparel brand. Oughtred will join FIGS on July 29, becoming CFO on Aug. 9. She spent almost 17 years at lululemon, serving in roles including SVP of financial planning and analysis since 2021. Before lululemon, Oughtred spent three years at PricewaterhouseCoopers in the audit and assurance practice.
Dan Nisser was named CFO at Milk Specialties Global (MSG), a nutritional ingredients manufacturer, effective immediately. Nisser succeeds Tim Preuninger following his decision to retire. Preuninger will remain with MSG until September for a transition period. Nisser brings more than 30 years of experience to MSG. Most recently, he served as group VP, CFO, Ag Services and Processing, at Archer-Daniels-Midland.
Mohammed G. (Rally) Zerhouni was named SVP and CFO at Middlesex Water Company (Nasdaq: MSEX), effective June 24. Zerhouni joins Middlesex following a search for a successor to SVP, treasurer and CFO A. Bruce O’Connor, who will retire from the company effective June 21 after 34 years of service. Zerhouni was most recently the SVP of finance and principal accounting officer of SJW Group.
Lewis Black was named EVP, CFO, and treasurer at SolarWinds (NYSE: SWI), a provider of IT management software, effective in August. Black will succeed J. Barton Kalsu, who gave his resignation on June 6. Kalsu will remain as CFO through Aug. 15. Black brings over 25 years of experience, having served in financial and operational roles at AT&T, Lucent Technologies, Avaya, and Citrix. He most recently served as CEO of Actian, and previously as SVP and CFO.
Big Deal
A new report by Marsh, an insurance broker and risk advisor and a business of Marsh McLennan, finds the number of companies experiencing a cyber extortion event increased by more than 50% last year. The findings are based on an analysis of more than 1,800 cyber claims submitted to Marsh in the U.S. and Canada in 2023.
Last year, 282 extortion events were reported to Marsh, a 64% increase from 2022. Although representing only 17% of all cyber claims filed, ransomware remains a top concern for organizations given their increased frequency and sophistication, according to the report. Meanwhile, the median ransom demand jumped to $20 million in 2023 from $1.4 million. The median payment made was $6.5 million, and this reflects the effectiveness of extortion negotiations, Marsh noted.
“While the decision to pay or not to pay is highly nuanced, organizations should be prepared to respond, including by ‘practicing’ their response under a variety of scenarios,” according to the report.
Going deeper
Here are a few Fortune weekend reads:
“Nvidia stock forecast: After rising more than 200% in a year the chipmaker could be fabulously profitable, an AI leader—and an extremely poor investment” by Shawn Tully
“Candy maker Mars is the biggest vet provider in the country: Inside its sprawling operation” by Luisa Beltran
“It’s not a contest: Bragging about your work stress may make you seem less likable and incompetent, says new study” by Lindsey Leake
Overheard
“The workplace adapts with every generation, and every generation learns to adapt to the workplace. Gen Z is no different, though this process may take longer for them. Once they do, the workplace will never be the same. That’s all the more reason for managers to be ready for them and the sweeping changes they will bring.”
—Jean M. Twenge, professor of psychology at San Diego State University, writes in a Fortune opinion piece. Twenge is the author of the book, Generations: The Real Differences between Gen Z, Millennials, Gen X, Boomers and Silents—and What They Mean for America’s Future.
