CannaChiefs Media recently issued a press release announcing a contest to help find the next CEO of Canopy Growth (NYSE:CGC). The only problem was it didn’t seek out Canopy Growth’s approval before pushing the release onto the internet. While it didn’t sting CGC stock too hard, it was something of an embarrassment.
Within a day, the cannabis-related media company was forced to formally apologize to Canopy Growth.
While the press release’s execution was less than ideal, it is a question that anyone considering investing in CCGC stock should consider.
After all, there are only going to be so many seats at the global cannabis table. The right pick for chief executive ensures CGC has a seat at the table. The wrong pick means the probable destruction of billions of dollars of shareholder value.
Hanni Monk, CannaChiefs Media’s chief editor, put it like this:
“Canopy must take their time to find the right fit. I have a feeling at this stage of Canopy’s brand lifecycle they need to continue growing exponentially to stay on top of the global cannabis stage. They may need to source a CEO from outside the cannabis industry, perhaps a big player from Silicon Valley who understands how to build a global partner ecosystem.”
The editor’s not mistaken. This hiring is the most important of its relatively short history.
You can be sure that Constellation Brands (NYSE:STZ) CEO Bill Newlands will have a considerable amount of input into the choice for Canopy’s next CEO.
Here are three senior executives I believe would be suitable for CGC’s future.
Mark Parker
Why would the CEO of Nike (NYSE:NKE) want to leave a job that he’s held for the past 13 years? He probably wouldn’t.
However, it’s not hard to see that Parker checks all the boxes. He understands consumer buying habits, he operates a global business, he knows how to get products to market quickly, and most importantly, he’s CEO of a company that understands the younger generation.
While people of all ages are trying cannabis and its derivative products such as edibles, vapes, and infused drinks, it’s the young people that will drive the CGC stock price higher. According to Statista, 24% of consumers aged 18-29 smoke marijuana. Another 13% are between 30-49, while just 17% of U.S. consumers above the age of 50 smoke the stuff.
Nike remains a cool company. The CGC stock price would instantly move higher on his hiring.
The downside: Parker’s still working on fixing the culture at Nike. Does Constellation want to take the chance on someone who’s been a part of the problem? Also, at 63, he’s probably a little old for the job.
Laura Alber
While suggesting the CEO of Williams-Sonoma (NYSE:WSM), a retailer that specializes in housewares and furniture, might seem like an odd one, the fact that Alber’s only 50 years old, has overseen the company for the past nine years, and understands the balance between brick-and-mortar and online retail, makes her an excellent dark horse.
Since taking the top job in May 2010, WSM stock has appreciated by 123%. In that time, Alber’s had to negotiate a slowdown at its brick-and-mortar stores. However, thanks to the growth of its West Elm brand (in its most recent quarter, West Elm grew same-store sales by double digits) the company’s top and bottom lines continue to grow.
For my money, she’s one of the most underrated CEOs in the country.
Rosalind Brewer
I doubt that Starbucks (NASDAQ:SBUX) CEO Kevin Johnson would be too happy losing his chief operating officer, but Rosalind Brewer understands how to run big companies. She did it at Walmart (NYSE:WMT) and she’s been doing it at Starbucks since coming out of semi-retirement in October 2017.
In February, Amazon (NASDAQ:AMZN) named Brewer a director of the ecommerce company. Anytime Jeff Bezos comes calling, you know you’re talking about a top-notch candidate. Although Brewer is one of four women on Amazon’s board, she’s the only black person currently serving. Hopefully, she can recruit one or two other visible minorities to the board.
The fact that she’s got experience with large volume merchandising (she was Sam’s Club CEO from 2012 and 2017 ) along with food and restaurant experience makes her an attractive recruit.
Although 57, I think the biggest issue for Brewer would be the fact that between Starbucks and Amazon, she’s got a lot going on in Seattle. I’m not sure she’d want to move across the country to operate a business that’s anything but a sure thing.
CGC stock is entering an important stretch right now, with prices fighting valuation concerns. The last thing it needs is a CEO who isn’t prepared to weather the kind of storms that are in the future for CGC stock.
At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.
