CarMax Inc. CEO Tom Folliard will retire by the end of the year, the used-car retailer said today.
Folliard, 51, will be succeeded by Bill Nash, 46, the executive vice president of human resources who was promoted to president effective today as part of a succession plan.
The largest U.S. used-car retailer also said Cliff Wood, 49, executive vice president of stores, was promoted to COO today.
“Tom Folliard has built an exceptional management team at CarMax, positioning the company for continued growth,” Bill Tiefel, chairman of CarMax’s board of directors, said in a statement. “The execution of our long-term succession plan, with Bill as president and Cliff as COO, ensures a seamless management transition and the continuity of the company’s culture.”
The succession plan was announced as CarMax’s stock has fallen about 25 percent over the last three months, compared with a 7.8 percent drop for the S&P 500. Shares were down 4 percent in early trading today to $42.41 per share. CarMax shares were trading for as high as $74.73 in April.
Folliard became president and CEO of CarMax in 2006. The Richmond, Va., retailer said its store base and revenue have doubled in that time, while its net income has quadrupled.
Folliard is expected to become the nonexecutive chairman of the board upon retirement.
Nash has served as head of human resources since 2012 and served as the company’s vice president and senior vice president of merchandising between 2007 and 2011. He joined the company in 1997 after working as an accountant with Circuit City Stores Inc.
Nash “is a highly talented leader with experience in all aspects of our business and is the right choice to guide CarMax through the next phase of our growth and development,” Folliard said in the statement.
Wood has overseen the company’s sales, service and merchandising since 2012 and has been with CarMax since 1993.
