Succession Planning As it Should Be - Dupont

Dupont Co. DD (NYSE) the hug chemical manufacturer has shown American industry how succession planning at the top should be managed.  Today the company announced that Charles Holliday, a 38 year veteran of the firm and the company's CEO for the last ten years, will be stepping down as of January 1.  The board announced that Holliday will be replaced at the time by Ellen Kullman.  Kullman currently is an executive vice president and a member of Dupont's office of the chief executive.  She has been with the firm since 1988.  According to Reuters,

"Kullman has been groomed for the top position over the last two years,"

Kullman will be named president and director on October 1.  Both Kullman's background and great success at the firm appear to make her a great fit for the CEO position.  According to an AP story,

Revenue in the company's safety and protection segment increased from $3.5 billion to $5.5 billion while she was group vice president from 2002 to 2006.

Dupont's succession planning may ultimately serve as a case study for large firms.  Keep a close eye on Kullman as she moves to succession and takes over the reins of one of the largest chemical companies in the world.

For more:

Delaware Online

Portfolio.com

MarketWatch

Bloomberg

Medical Device Manufacturer Finally Gets Its Man

Steris Corporation STE (NYSE) a medical products manufacturer appointed a new CEO, Walter Rosebrough, Jr., after an extensive search was put in place nearly a year ago when it was announced that CEO Les Vinney would step down in June 2007. Rosebrough, who has had extensive experience in the medical products industry appears to be a good choice for the firm. According to a story in the Cleveland Plain Dealer:

Rosebrough, 53, has spent more than 20 years in the health-care industry in a series of senior management positions. He served as president and chief executive officer of the Hill-Rom Co., a wholly owned subsidiary of Hillenbrand Industries Inc. Hillenbrand provides medical technologies and related services for the healthcare industry, including patient support systems, non-invasive therapeutic products for a variety of acute and chronic medical conditions, medical equipment rentals and workflow information technology solutions.

Rosebrough was executive vice president of Hillenbrand Inc. when, in 2000, he left the company to lead Vasocor Inc., a Credit Suisse First Boston- funded start-up health-care company, as president and chief executive officer. The company focused on development of a non-invasive medical device to enable early detection of atherosclerosis.

Since early 2005, Rosebrough has served as the president and chief executive officer of Coastal Hydraulics Inc., a private company. Coastal Hydraulics provides hydraulic and pneumatic systems, equipment and services used in industrial, marine and mobile equipment applications.

Rosebrough's extensive background and experience should serve Steris well. Watch Rosebrough's early moves at the firm and decide for yourself.

Arrow International Inc. Fires CEO and Bows to a Major Shareholder

Arrow International Inc. ARRO (NASDAQ) board of directors announced today the termination of its current CEO and chairman, Carl G. Anderson, Jr. The Board said that it had lost confidence in Mr. Anderson's ability to lead the company. In the interim, the board has brought back former president and chief operating officer of Arrow, Philip B. Fleck and made him interim President and CEO. The Company also announced that the Board elected R. James Macaleer non-executive Chairman of the Board of Directors.

The company stated,

"During this period the company has repeatedly failed to meet the sales and earnings targets provided to the investment community as well as projections Mr. Anderson has provided to the board,"

The company also stated that it currently expects fiscal year 2007 sales and earnings per share to be in near the low end of targets earlier provided in the Company's second quarter press release of March 27, 2007.

Both these announcements came on top of a notice from the McNeil Trust that was made public by Arrow International of the Trust's intent to nominate five persons for election as directors at the 2007 annual meeting in addition to the three persons it has already indicated it planned to nominate. In essence, The McNeil Trust seeks to elect 100% of the directors of the Company despite the fact that it only owns 10% of the outstanding shares. At this point, Arrow International has indicated it has no plans to block the Trust's attempt to take over the board and effectively the company.

What exactly is going on?

For more on the changes see the below story in the Philadelphia Enquirer on May 17 and articles published today, May 31:

Philadelphia Enquirer (May 17)*
Forbes
Wall Street Journal (subscription req.)
Street Insider (subscription req.)
Houston Chronicle
Trading Markets

Verisign Shifts Top Management

Verisign VRSN (NASDAQ), a provider of digital infrastructure for networked companies announced that Stratton D. Sclavos, who has been with the firm for twelve years, resigned as CEO, effective immediately. The Board elected William A. Roper, Jr. as President & CEO. He has served as the board's lead independent director and has been a member of the board since 2003. The board also elected Edward A. Mueller as Chairman of the Board.

As with so many other technology related companies, Verisign was caught up in the options backdating scandal. The company initiated its own investigation of its management which according to the company has been substantially completed. According to Verisign, the review did not find intentional wrongdoing by any current member of senior management, including Sclavos. The abrupt announcement was not however, a reassuring sign.

Sclavos' replacement, William A. Roper, Jr., nevertheless, appears to be a really solid choice. He had vast experience in different areas while at Science Applications International Corporation. He most recently served as executive vice president at the firm. He also served as the company's CFO and was instrumental in some of the company's acquisitions and also worked on the sale of specific parts of the firm.

Keep an eye on Verisign to determine why Sclavos left and how Roper and Mueller intend to run the company.

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Wall Street Journal (subscription req.)
Barron's Tech Trader Daily
CNET
Blogging Stocks
Schaeffer's Research
Verisign Gets Nasdaq Notice (May 17)
Seeking Alpha (May 30th)
InfoWorld (May 31)