13891 Thu, 02/28/2008 - 12:44pm
MINNEAPOLIS–After a fiscal year in which the company’s net income fell by more than 41 percent, Select Comfort has divided the positions of chairman and chief executive officer.
Earvin Shames, who had served as the company’s chairman from 1996 to 1999 and who is now its lead director, has been appointed non-executive chairman, while Bill McLaughlin, who had also served as chairman, has retained his posts of president and CEO. In a Select Comfort statement, Shames said the decision to split the positions “is the result of the board’s ongoing review of best practices with regard to corporate governance.”
McLaughlin added, “With this new structure, I will now be able to devote all my energy to the leadership and management of this company, as well as entirely focus on driving our growth and profitability initiatives.”
In a conference call with financial analysts after the release of its 2007 results, McLaughlin acknowledged that it was a difficult year “from start to finish,” including a decline in sales, especially during the critical holiday selling season. He also said the company had taken several actions to reduce costs, including the elimination of 20 corporate management positions.
“We know what needs to be done to regain our position as a growth company,” McLaughlin said to the analysts, “and it starts with stabilizing the business in a challenging environment.”