Dive Brief:
- Morningstar CFO Jason Dubinsky will step down in December from his role after more than seven years as its top finance leader, the company announced Wednesday. The investment research and financial services firm said he was leaving to “pursue other interests” and declined to comment on the departure beyond the release.
- Dubinsky, who joined the 40-year-old Chicago-based company in 2017 as its CFO, has held the finance reins over a period in which the company’s value tripled and its revenue, operating profit and cash flow have more than doubled, the company said in a press release. The company currently has a market capitalization of over $14 billion.
- In a Q3 letter to shareholders contained in a Wednesday securities filing, Morningstar,CEO Kunal Kappor called Dubinsky a “terrific partner,” noting the company is evaluating candidates to succeed him. “Jason…lives Morningstar's values every day and has created significant value for shareholders during his seven-plus years here. Jason has helped position the company for continued durable growth and, on behalf of the Morningstar team, I want to thank him for his leadership, stewardship, and friendship,” Kappor said in a statement contained in the release.
Dive Insight:
The news of Dubinsky’s departure coincided with the company’s release of its Q3 earnings report. Packaging earnings reports and news of material executive changes together is viewed by some corporate governance experts as a best practice strategy, because it allows for continuity through the earnings process, shows that the departing leader is aligned with the numbers being reported, and is less likely to rattle investors as a stand-alone resignation announcement might, CFO Dive previously reported.
The company’s shares were trading down about 3% at about $331.48 in afternoon trading.
Morningstar reported its Q3 net income more than doubled to $119.7 million, with the period including a $45.3 million gain related to the sale of the company’s commodity and energy data business. Revenue increased 10.5% quarter over quarter on a reported basis to $569.4 million, with Morningstar Credit, PitchBook and Morningstar Data and Analytics being the biggest growth drivers.
At the same time, the company reported operating expenses increased 1.9%, with the largest contributors to the increase being compensation costs due primarily to higher bonuses and technology infrastructure costs.
A CPA, Dubinsky started out early in his career working as a senior accountant at the now defunct Arthur Anderson, later getting Wall Street experience working in investment banking at Lehman Brothers and Goldman Sachs, according to his LinkedIn profile.
In 2017 he joined Morningstar from the Deerfield, Illinois-based drugstore retailer Walgreens Boots Alliance, where he was CFO of planning and central operations and vice president, finance and treasurer. He has an MBA from New York University and a Bachelor of Business Administration from University of Michigan.
Last year, Dubinsky’s compensation totaled $2.68 million, including $1.59 million in stock awards, $596,050 in non-equity incentive plan compensation, $475,000 in salary and $16,875 in other unspecified compensation, according to the company’s March 28 proxy filing.
As part of the succession process, Dubinsky will continue to serve as CFO until Dec. 31 and will act in a consulting role to support the leadership transition through June 30.
