RumbleOn’s Chesrown steps down, co-founder of RideNow appointed interim CEO

RumbleOn recently announced that the board of directors has appointed Mark Tkach, the co-founder of the RideNow powersports group, acquired by RumbleOn in August of 2021, and a major shareholder, to serve as the interim chief executive officer of the company, following the resignation of Marshall Chesrown from that role on June 15. During Tkach’s interim service, the board’s executive transition committee will continue its efforts to identify a permanent CEO.

“We thank Mark Tkach for his willingness to assist during this time of transition and are confident that his deep knowledge and experience in the powersports industry will provide enhanced opportunities for operational excellence as the Company works to identify a permanent successor,” says Steve Pully, chairman of the RumbleOn board of directors.

In addition, the company announced that it has reached an agreement in principle with the Coulter-Tkach Group to resolve all outstanding proxy matters currently subject to contest at the annual meeting of shareholders, scheduled for July 14.

The company and Coulter-Tkach have agreed to end the proxy contest on the following terms:

  • The board will expand temporarily from seven to nine members to allow Melvin Flanigan and Mark Tkach to join immediately.
  • Steve Pully is named Chairman of the Board.
  • Coulter named as a board observer until his election at the annual meeting, with access to all board activities and access to books and records.

Reorganization of board committees, including:

  • Nominating and corporate governance: Shin Lee (Chair), Becca Polak Melvin Flanigan
  • Audit: Melvin Flanigan (Chair), Steve Pully, Kevin Westfall
  • Compensation: Becca Polak (Chair), Melvin Flanigan, Steve Pully
  • CEO Transition: Mark Tkach (Chair), Shin Lee, Becca Polak, Steve Pully, Kevin Westfall, William Coulter (non-voting until such time he is appointed/elected to board)
  • The Coulter-Tkach group and all of the participants in their proxy statement will withdraw all existing nominations and proposals in connection with the 2023 Annual Meeting.
  • For a period of 90 days from the date of the agreement in principle, the stockholders agree to vote as recommended by the board at any annual or special meeting of the company’s stockholders and to refrain from calling any special meetings of company stockholders, granting or soliciting proxies (other than to named proxies included in the company’s proxy card for any stockholder meeting), or making any nominations or proposals at any annual or special meetings of stockholders.