Starwood CEO Leaves the Company
Frits van Paasschen, Starwood CEO since 2007, has resigned. Board Chair Bruce Duncan focused on execution rather than differences over strategy as the main reason for van Paasschen's departure: "This is not about strategy. . . This is all about execution. We want to do better."
In a news release on Starwood's website, the company announced the decision along with a temporary replacement: Adam Aron.
Starwood Hotels & Resorts Makes CEO Change
February 17, 2015
-- Frits van Paasschen Resigns as President, CEO and Director
-- Starwood Director Adam Aron Appointed CEO on Interim Basis
-- Company to Focus on Accelerating Growth and Improving Performance
STAMFORD, Conn.--(BUSINESS WIRE)-- Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced that Frits van Paasschen has resigned by mutual agreement with the Board of Directors as President, Chief Executive Officer and a Director. Adam Aron , a Starwood Director since 2006, has been named Chief Executive Officer on an interim basis while the Board conducts a search for a permanent CEO that will include both internal and external candidates. van Paasschen will continue with Starwood as a consultant to assist in the transition. Read more.
On a conference call, Aron emphasized his "bias for action" and outlined four steps he'll take:
- Drive top-line growth through dedicated marketing campaigns;
- "perform with a high degree of focus and with higher operational excellence";
- manage costs aggressively; and
- "(expand) the size of our pipeline and footprints as we seek the objective of higher net rooms growth."
- See more at: http://www.hotelnewsnow.com/Article/15285/Why-Starwoods-van-Paasschen-resigned#sthash.FXnqSRBr.dpuf
- Drive top-line growth through dedicated marketing campaigns
- "Perform with a high degree of focus and with higher operational excellence"
- Manage costs aggressively
- "[Expand] the size of our pipeline and footprints as we seek the objective of higher net rooms growth."
Discussion Starters:
- Assess Starwood's news release. What key messages do you take from the statement? What is not being said?
- Do you think the company appropriately balanced respect for van Paasschen and plans for the future?