Struggling Fairlawn polymer company A. Schulman Inc. has replaced its chief executive officer with Chairman and former CEO Joe Gingo.
“The board and Bernard Rzepka, president and chief executive officer, have mutually agreed that he will relinquish his officer role and his directorship role,” the company said in a statement.
A. Schulman Inc., which makes resins, compounds and similar products, last week lowered its earnings guidance for the year, leading to a dramatic plunge in its stock price. Shares are down 23.6 percent since Jan. 1 even as the overall stock market has reached record highs.
Gingo, 71, a former top Goodyear executive, was A. Schulman’s CEO and president from 2008 through 2014. Rzepka, 56, succeeded Gingo.
Gingo said the company will go through a comprehensive review of its business plan.
“Joe led this company through a remarkable seven-year renaissance as its chief executive officer and the board is confident that he will restore A. Schulman’s operational and financial performance to the high level our shareholders expect,” David Birney, lead independent director, said in a statement. “We thank Bernard for his dedicated service to A. Schulman during the last 24 years. His many contributions throughout his career with the company should not be overlooked or minimized in light of this transition.”
Besides a business plan review, the company will look at near- and longer-term global end market trends, A. Schulman said. The company intends to hire an advisory firm to assist in the review.
“Like our fellow shareholders, the board is not satisfied with the company’s less-than-optimal performance throughout fiscal 2016,” Gingo said. “In light of last week’s earnings guidance revision, the time has come to conduct a comprehensive review of our business plan and strategic execution.”
Gingo said A. Schulman will provide an update on its assessment when appropriate.
“We will not, however, speculate on any potential outcomes from this assessment or the timetable for it,” he said. “The goal is to verify our market intelligence, refine our vision and improve our execution.”