Poor Earnings - CEO change?

Are we beginning to see some change in the top management environment? Throughout the current recession we have seen most public companies stay with their top management even as their firms continued to show weak results. Just lately, we have begun to see some companies that have fared poorly lately experience changes at the top. In my previous post, I examined the change at Nokia after poor performance. Now we have the announcement that Eric Claus the CEO of the Great Atlantic and Pacific Tea Company (known as A&P) GAP (NYSE) will be leaving his position immediately. Claus’ departure comes as the company’s performance continues to slide. While the change might not be considered a huge surprise it comes without a real successor ready to take Claus’ position. In the interim, A&P will be run by Executive Chairman and former CEO, Christian W.E. Haub. According to a story in the Wall Street Journal byKelly Nolan and Veronica Dagher,

Haub is also partner and co-CEO of Tengelmann Warenhandelsgesellschaft KG, A&P’s largest shareholder.

We may start to see more and more changes at the top of companies that fail to perform up to expectations.

For more:

Bloomberg

Marketwatch

APP.com

Poor Financial Results Usher in Quick Management Changes

Nokia NOK (NYSE) the once indomitable Finnish based wireless phone company just announced some management changes. Nokia who has found itself with an uphill battle in today’s smartphone era is battling Apple and many of the others. So far, its results have been nothing to brag about. In a story hat appeared on Newsvine,

The company said Timo Ihamuotila, head of global sales, will replace Rick Simonson as the chief financial officer on Nov. 1. Simonson will head the mobile phones sector in the devices unit.

Simonson has been CFO since 2004 and will continue to be on the executive board, Chief Executive Officer Olli-Pekka Kallasvuo said.

“After six successful years as CFO, it is great to have Rick move to such an important operational role,” Kallasvuo said. “Rick Simonson’s deep knowledge of the business and its financials will be valuable

for the significant part mobile phones play in Nokia’s business.”

These changes are surely not the end of the problems facing the company.

For more:

Barrons Tech Trader

Wall Street Journal

Bloomberg

BusinessWeek