Ryder Named Chairman of Reader's Digest
Jim Milliot -- 5/4/98
In an unexpectedly quick changing of the guard, Reader's Digest announced last week that Thomas O. Ryder has been named its chairman and CEO. Ryder, who had been president of American Express's Travel-Related Services, assumed his position last Wednesday. George Grune, RD's former chairman and CEO who had returned to those roles last August following the resignation of James Schadt, will remain a director of the company.The length of time RD had been taking to find a permanent chairman was one of the issues that has angered shareholders of the struggling company. At RD's annual meeting late last year, several shareholders pressed the company to make the recruitment of a new chairman a top priority, something the board seemed reluctant to do at that time. Unlike Schadt, Ryder has a background in direct mail and publishing, two attributes RD said it was looking for in its next chairman. Among the different jobs Ryder has held are management positions with Time, Xerox Education Publications, CBS Magazines and the American Express Publishing and Direct Marketing Group. Ryder's new company continues to struggle financially. Total revenues for the third quarter fell 7%, to $635.5 million, while net income dropped 61%, to $14.6 million. Sales in the books and home entertainment segment fell 10% for the quarter, to $413 million. In the nine-month period, net income plunged 92%, to $12.5 million, as sales fell 9%, to $2 billion. Sales in the books and home entertainment group fell 14%, to $1.24 billion. Back To News---> |
