(Rightallegiance.com) – Planet Fitness, a popular gym franchise, recently experienced a significant drop in market value, shedding $400 million in March following a public backlash over its transgender policy. In response to these challenges, the company announced the appointment of a new CEO, Colleen Keating, who is known for her commitment to diversity, equity, and inclusion (DEI).
Keating, who previously led FirstKey Homes, is recognized for her proactive stance on DEI initiatives. During her tenure at FirstKey, she made a public commitment by signing the “CEO Action for Diversity & Inclusion pledge.” This pledge focuses on enhancing workforce diversity through inclusive hiring practices that aim to tap into diverse talent pools across various locations and backgrounds.
In a LinkedIn post from two years ago, Keating expressed her dedication to DEI, emphasizing the importance of integrating these values into corporate culture. “Signing the CEO DEI pledge was a decision to reaffirm my dedication to fostering diversity, equity, and inclusion within the workplace and the broader communities we serve,” Keating stated. She highlighted the role of DEI in creating trusting workplace environments conducive to discussing complex issues and sharing best practices.
In an interview with Triple Pundit in 2022, Keating discussed the importance of embedding DEI deeply within a company’s culture, rather than viewing it as a temporary program. “DEI must be seen as a fundamental imperative, seamlessly integrated into the fabric of our organizational practices and behaviors,” she remarked.
Planet Fitness emphasized Keating’s qualifications for the CEO role, citing her extensive operational experience and her adeptness at steering large-scale franchise operations. “Colleen’s impressive track record in building results-oriented teams and her focus on operational excellence make her an ideal leader for Planet Fitness,” said Stephen Spinelli Jr., chairman of the Planet Fitness board. “Her ability to instill a culture-first approach is exactly what we need as we enter the next phase of growth.”
Keating is scheduled to take over from Chris Rondeau as the CEO on June 10. Her appointment comes at a time when Planet Fitness is navigating through a turbulent period. The company’s stock took an additional hit earlier this week, dropping by 1.7%.
The controversy that led to the sharp decline in Planet Fitness’s market value began with an incident involving Patricia Silva, a longtime member of the gym in Fairbanks, Alaska. Silva voiced her concerns on social media about a transgender individual in the women’s locker room, which sparked widespread debate and led to her membership being revoked for violating the gym’s policy against photographing other patrons.
This incident was not isolated. There have been several troubling events at various Planet Fitness locations, including allegations of inappropriate behavior in locker rooms. These incidents have raised questions about the gym’s policy, which allows members to use locker room facilities based on their self-reported gender identity.
Amid these challenges, Planet Fitness maintains its commitment to inclusivity and respect for all individuals, as outlined on their website. The company’s policy aims to provide a safe and welcoming environment for all, consistent with their philosophy of being a “judgment-free zone.”
As the new CEO, Keating faces the complex task of steering Planet Fitness through this critical juncture, balancing the implementation of inclusive policies with ensuring the safety and comfort of all gym members. Her leadership will be pivotal in shaping the company’s future, as it seeks to recover from recent setbacks and reinforce its commitment to an inclusive and respectful community.