Dive Brief:

• Tyson Foods’s swift decision Thursday to choose 18-year company veteran Curt Calaway to serve as interim CFO could help reassure investors and others about the company’s standing in the wake of the abrupt suspension of its CFO John R. Tyson — who is also the son of board chairman John H. Tyson and great-grandson of the Springdale, Arkansas-based company’s founder, an expert told CFO Dive.
• “Family boards are often secretive and it's crucial for the board to communicate clearly with both investors and employees, as well as with Mr. Calaway, to set expectations and ensure smooth operations,” Shawn Cole, president of boutique executive search firm Cowen Partners told CFO Dive in an emailed response to questions. “This leadership transition could reassure staff and shareholders of the company’s financial health if done correctly.”
• John R. Tyson was suspended from his duties as CFO effective immediately Thursday, according to a Thursday securities filing. The move followed after Tyson was arrested for driving while intoxicated, Industry Dive sister publication Agriculture Dive reported. The incident also comes less than two years after Tyson was arrested on charges of public intoxication and criminal trespassing, which occurred just a month after he was first appointed to the CFO seat.

Dive Insight:

Calaway, 50, most recently served as the chicken processor’s CFO for its prepared foods division, and has held multiple executive financial roles throughout his nearly two-decade career with the company, according to his LinkedIn profile. Prior to Tyson Foods, he worked at Big Four accounting firm PricewaterhouseCoopers for 11 years.

Calaway’s age and experience present a very different profile than that of John R. Tyson, whose family ties have drawn scrutiny since he was appointed to the company’s CFO seat in 2022. Board governance experts at the time expressed concerns that his appointment could potentially lead to a conflict of interest without proper governance in place.

Tyson’s relative youth — he was 32 when appointed — and lack of experience in such a role alongside his family connections raised ethical questions related to whether the company’s board would be able to terminate Tyson from his position in the event of non-performance.

Family-run businesses appointing relations to leadership positions must make sure they have a “transparent governance model, and a family charter that specifically address how they will manage any conflicts of interest,” Nicole Coomber, assistant dean and professor of management & organization at the Robert H. Smith School of Business at the University of Maryland told CFO Dive at the time.

“Family politics aside this is a $53B company and I think the Tyson board should conduct a thorough search to find the most qualified CFO, whether internally or externally,” Cole said of the current leadership transition, noting that he hopes Tyson receives the help he needs.

Calaway is a “strong candidate” for the company’s CFO seat, “due to his significant role at the company and familiarity with its closely held, family-controlled structure,” Cole said. “Clearly Mr. Calaway has succeeded in navigating this environment. Where an outsider might struggle with the family dynamics and issues of accountability and transparency.”

The next steps Tyson Foods might make regarding Tyson’s arrest, the second highly-publicized such incident since he took on the CFO role, remain to be seen. Tyson Foods posted a brief statement Thursday noting that the company is “aware” of Tyson’s DWI arrest and that it has named Calaway as interim. Tyson Foods declined to comment further beyond its Thursday statement.

While the company opened an investigation into Tyson’s 2022 arrest, the board — led by the CFO’s father since 1998 — stated it had “continued confidence in his ability to lead Tyson Foods as CFO,” CFO Dive previously reported. Tyson apologized to investors in a November 2022 earnings call and took full responsibility for his actions.In January 2023, Tyson pled guilty to the charges of public intoxication and trespassing, paying $440 in total fines.