Divisional Chief Executive – Electronics Manufacturer

The Challenge

Following the appointment of a new Chief Executive, his strategic review concluded that the business needed to be restructured into four new divisions, with a fifth division being created comprising non-core businesses to be run for cash and profit in the short-term, whilst being prepared for disposal in the medium term.

The Approach

The brief taking process identified that the non-core businesses in the Division were globally dispersed, and operated in a variety of sectors and technologies only loosely connected to electronics. Therefore, the fundamental requirement was for an experienced international general manager who had operated in one or more engineered products sectors. As an overlay, the other principal requirement was strong M&A experience; more specifically disposalrelated.

The other key factor in framing the context of this assignment was to recognize that this was a “project” job and that once the project was over (i.e. sale completed) the role would cease to exist. Clearly this proposition may not appeal to those people looking to build a corporate career, but equally may be very attractive to those people who prefer project work, due perhaps to working in the interim market, or due perhaps to having reached a career-stage where corporate advancement is no longer the prime objective.

The Result

The appointee had previously broken up an ailing plc with global operations, in order to return value to  creditors and shareholders. He had also run many engineered product businesses. He had reached a stage in his career where he aspired to do one last executive role, before “going plural”.

Odgers Berndtson assisted the client with the development of a suitable remuneration package which  acknowledged the project nature of the role, by providing a special bonus arrangement which  rewarded profit and cash maximisation in the short-term, whilst providing a completion incentive and sale value maximisation incentive in the medium term.

Last Word from the Client

“The appointee is a heavyweight for  this role – just what I need, as I don’t have a lot of time to devote to noncore businesses. Also, the process threw up a second candidate who was a dead ringer for one of my four core divisions – so we killed two birds with one stone.”

About Odgers Berndtson

Odgers Berndtson is the UK’s leading executive recruitment firm. It operates internationally across 51 offices, of which 8 are regionally distributed throughout the UK.  Offices are located in London (West End & City), Leeds, Manchester, Birmingham, Glasgow, Aberdeen and Cardiff.

It comprises a broad range of dedicated practices offering specialist executive recruitment skills by sector and by job-function. The Electronics & Precision Engineering Practice serves a broad range of engineered component, OEM product, systems integration and service companies.

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