Beyond Meat has a new CFO—and investors are hungry for a turnaround

Following decreasing sales and an executive’s nose-biting incident, Beyond Meat Inc., a producer of plant-based meat substitutes, is making sustainable changes in leadership, including a new CFO, and is also shrinking its workforce. 

Douglas W. Ramsey, Beyond Meat’s chief operating officer for less than a year, had his last day on the job on Oct. 14, according to the company’s 8-K document. Ramsey had been on suspension since Sept. 20 after being arrested following a college football game in Fayetteville, Ark.

During an altercation in the Stadium Drive Parking Garage, Ramsey punched through the back window of another man’s car and ultimately “bit the owner’s nose,” according to local reports. Before joining Beyond Meat in December 2021, Ramsey spent 30 years in the poultry business at Tyson Foods.

Beyond Meat’s CFO is also departing. Philip E. Hardin notified the company on Oct. 10 that he would step down from his position as chief financial officer and treasurer to pursue another opportunity, effective Oct. 12, according to the 8-K document. But Hardin, who began as CFO in July 2021, will continue as an employee through Oct. 28 to support the transition. “His decision did not involve any disagreement on any matter related to the company’s operations, financial reporting, internal controls, policies or practices,” the company stated. 

Lubi Kutua, VP of financial planning and analysis and investor relations at Beyond Meat, was promoted to CFO and treasurer, effective Oct. 13. Kutua, age 42, joined the company in January 2019. Before that, he served as VP of equity research at Jefferies, LLC. He began his career at Goldman Sachs. Kutua’s annual base salary at Beyond Meat will increase to $375,000 and he’ll have the opportunity to earn an increased annual bonus at a target amount of 50% of his base salary, according to the filing. 

Other leadership changes include Henry Dieu, the company’s current VP, and the corporate controller is now the principal accounting officer. Jonathan Nelson will lead operations and supply chain as SVP of operations. And, Deanna Jurgens, the president of North America and global chief growth officer is leaving, and that role is being eliminated.

Kutua is taking over the finance organization at a time when Beyond Meat (Nasdaq: BYND) has lowered its full-year sales outlook. Full-year 2022 net revenues are expected to be in the range of $400 million to $425 million, a decrease of 9%-14% compared to the full year 2021, the company announced on Oct. 14. This is in comparison to the previous expectation of the full year 2022 net revenues in the range of $470 million to $520 million.

In cost-cutting efforts, Beyond Meat is reducing its current workforce by approximately 200 employees, representing about 19% of the total global workforce. 

“We believe our decision to reduce personnel and expenses throughout the company, including our leadership group, reflects an appropriate right-sizing of our organization given current economic conditions,” Beyond Meat President and CEO Ethan Brown said in a statement. “We remain confident in our ability to deliver on the long-term growth and impact expected from our global brand.”

BYND’s 52-week high was $109.95, and the stock price closed at $13.34 on Oct. 14. The company struggles to maintain its initial pace of growth as there’s increased competition in the plant-based product industry and the company is not in a position for price reductions. In efforts to boost the brand, Beyond Meat announced in May celebrity and businesswoman Kim Kardashian as its “chief taste consultant.” 

“Beyond Meat is implementing measures to drive more sustainable growth, emphasizing the achievement of cash flow positive operations within the second half of 2023,” Brown said in a statement.

Kutua’s first earnings call as CFO is scheduled for Nov. 9. 

See you tomorrow.

Sheryl Estrada
sheryl.estrada@fortune.com

Big deal

A study by Amazon Web Services (AWS) and Gallup found that workers who use advanced digital skills or intermediate digital skills on the job earn 65% and 40% higher salaries, respectively, than employees who do not use a computer at work. The difference in income persists even after accounting for factors such as education level, age, gender, and immigration status, the report found. The more digital skills employees have, the more money they earn. They also have increased work satisfaction and greater job security, according to Gallup and AWS. The findings are based on a study of 30,000 workers and 3,000 hiring managers across 19 countries. 

Going deeper

“What the Andes Miracle teaches about adaptive leadership,” an opinion piece in Wharton’s business journal by the University of Pennsylvania’s Sudev Sheth, explores the lessons in leadership from the accounts of survivors on the 50th anniversary of the “Miracle of the Andes,” a harrowing plane crash.

Leaderboard

Richard Russo, Jr. was promoted from CFO to CEO and president at Bionik Laboratories Corp. (OTCPINK: BNKL), a robotics company providing neurological functional recovery solutions. Dan Gonsalves will fill the role of EVP and CFO. Gonsalves was formerly Bionik’s corporate controller. Both appointments are effective immediately.

Subhadeep Basu, CFO at Berkshire Hills Bancorp, Inc. (NYSE: BHLB) and Berkshire Bank, has resigned for personal reasons and to pursue other career interests. Basu has agreed to be available as an advisor to the company to assist with transition matters through Dec. 31. Brett Brbovic, age 42, SVP and chief accounting officer since 2015, was named interim CFO, effective Oct, 7. Brbovic first joined the company and Berkshire Bank from KPMG LLP in 2012. The company is in the process of searching for a new CFO through an executive search process.

Overheard

“I took the playbook I had at Walmart, which was very similar to the one I had in China, which was similar to Woolworths. You’ve first got to decide what sort of culture you want the business to operate in, and you’ve got to be able to demonstrate that through your actions and behaviors. Once you’ve got that reasonably clear in your head, you then need to plan.”

—Greg Foran, the former CEO of Walmart U.S., who left the company in 2019 to lead Air New Zealand, recently told Fortune how he set his priorities when switching from retail to the airline industry. 

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