From Founder to Pro: DTC Brands Tap Seasoned CEOs for the Next Stage

In 2025, being a visionary founder isn’t always enough.

Across Shopify’s mid-size DTC landscape, a clear shift is underway: beloved founder-led brands are bringing in seasoned operators to lead the next phase. Function of Beauty just appointed CPG veteran Monica Belsito as CEO after years of executive churn (Retail Dive).

Everlane’s Michael Preysman handed the reins to Alfred Chang, an operator with experience at PacSun and Fear of God (Business of Fashion). Allbirds brought in Joe Vernachio, a supply chain pro from The North Face (Retail Dive).

These aren’t one-offs. They signal a growing trend: founder energy built the brand. Operational muscle is now expected to scale it.

Why Founders Are Stepping Aside Now

The DTC 1.0 playbook—storytelling, CAC arbitrage, viral moments—doesn’t guarantee scale. Brands that thrived on Shopify’s early growth engine are now facing bloated ops, decaying margins, and tougher fundraising.

“The general tenor of the consumer landscape this year is one in which a lot of people are seemingly hanging on for dear life,” one founder told (Modern Retail).

VC dollars have dried up. Boards are nudging founders toward exits—or to make way for professionals.

“There are a lot of owners who believe they have exhausted what they can do for their business and are prepared to take a smaller position going forward,” said Cory Baker of Consortium Brand Partners (Retail Dive).

What the New CEOs Are Actually Doing

These aren’t symbolic hires. DTC’s new executives come from retail, CPG, and public-company ops—and they’re already making moves.

• Allbirds made Joe Vernachio CEO in March. As former COO, he helped implement a turnaround plan focused on inventory reduction and wholesale rationalization (Retail Dive). With sales down 15% last year, he’s now responsible for reining in losses and realigning channel strategy.
• Everlane installed Alfred Chang after interim leadership delivered the brand’s most profitable year yet—$8 million in EBITDA on flat revenue (Business of Fashion). Chang’s mandate: restore top-line growth without abandoning operational discipline.
• Function of Beauty replaced its founder CEO with Belsito—ex-Lola, ex-Sabra—signaling a push toward omnichannel retail and personalization at scale (Retail Dive). Under her leadership, the brand is deepening partnerships with Target, Amazon, and Walmart.

These operators are fluent in channel management, gross margin improvement, and—crucially—what it takes to prepare a brand for acquisition or public markets.

Will This Kill the Brand’s Vibe?

There’s always risk in sidelining a founder. Some consumers fall in love with the founder’s voice, not just the product. That shift can feel abrupt.

After Outdoor Voices was acquired, one observer summed it up:

“This isn’t Outdoor Voices, this is just another beige bland athleisure brand” (Modern Retail).

The term “zombie brand” is starting to stick for DTCs that keep operating after their original spark fades.

Still, many brands are managing the handoff carefully. Preysman remains Everlane’s “climate lead” and executive chair (Business of Fashion). Allbirds’ co-founders remain involved in innovation roles (Retail Dive). The smartest CEOs respect what the founders built—and don’t bulldoze the DNA that earned customer trust in the first place.

The Cultural Reset (and Cautionary Tales)

At Glossier, founder Emily Weiss stepped down following internal tension. Retail veteran Kyle Leahy took over and executed a quiet—but effective—reset. The brand leaned into wholesale, entered Sephora, and is now “larger and more profitable than ever before” (Retail Dive).

Not every story ends well, though.

Parade, the Gen Z underwear startup, was acquired just 3.5 years after launch. Founder Cami Téllez exited, writing,

“I am heartbroken to not be joining you guys in this next phase” (Inc.).

Critics questioned whether the brand’s inclusive edge could survive under a corporate parent.

As one former founder bluntly put it:

“You can’t just mandate cultural relevance” (Business of Fashion).

The Bottom Line

After a decade of celebrating DTC founders, 2025 is about execution. A wave of seasoned CEOs—armed with playbooks from CPG and mall retail—are tightening operations, fixing margins, and prepping brands for exits.

It’s not founder vs. operator—it’s founder then operator.

The best-case scenario? A founder’s vision meets real-world discipline. But the real test will be whether these new leaders can drive scale without killing what made the brand resonate in the first place.

Subscribe for weekly DTC insights.