CDI Corp. Names Scott Freidheim as Chief Executive Officer
PHILADELPHIA, Aug. 13, 2014 /PRNewswire/ -- CDI Corp. (NYSE: CDI) (the "Company") today announced that after a rigorous international search process, the Board of Directors has named Scott J. Freidheim as the company's next chief executive officer effective September 15, 2014. Freidheim, 49, joins CDI with more than 20 years of high-level experience across a range of industries with a proven ability to acclimate quickly and achieve strong financial performance. It is this business acumen and strategic vision that will be critical in generating value creation, which is the joint focus of Freidheim and the Board.
Freidheim most recently served as Vice Chairman – Post Acquisition Management (Europe) at Investcorp International, where he was responsible for all portfolio companies in Europe. Before joining Investcorp in 2011, Freidheim was Executive Vice President, Operating and Support Businesses with Sears Holdings and, more recently, President of Kenmore, Craftsman and Diehard. Under his leadership, Kenmore's market share position rose from third to first. Prior to his tenure at Sears Holdings, Freidheim served as Executive Vice President, Chief Administrative Officer at Lehman Brothers. At Lehman Brothers, he also held officer positions in the investment banking and investment management divisions. Freidheim has served on corporate, higher education and not for profit boards. Freidheim is a member of the Board of Trustees of the Institute of International Education and is a member of the Economic Club of New York and the Council on Foreign Relations. He was also a member of the Young Global Leaders Forum and Global Agenda Council of the World Economic Forum focused on the Skills Gap.
"The Board of Directors undertook an intensive search process for a new CEO. Having demonstrated an ability to master a variety of industries and successfully execute transformation strategies, Scott was clearly the best candidate to guide CDI to a more profitable, focused and growth orientated future," said Walter Garrison, Chairman of the CDI Board of Directors and the founder of the company. "The Board wanted a strategic thinker with the imagination to capitalize on our present strengths and leverage new opportunities for value creation. Scott has a proven track record of making strategic decisions that generate positive results."
Freidheim's contract is structured to emphasize long-term rewards based primarily on the creation of tangible shareholder value. He has agreed to take lower current compensation in return for a significant long-term opportunity contingent entirely upon achieving share prices that are between 2-3 times the current stock price. Any reward earned would cliff vest at the end of the five year contract.
"I am honored to join CDI, a company with a strong portfolio, balance sheet and client relationships," said Freidheim. "All of these attributes provide a strong foundation for growth that when built upon will create substantial, long-term value for CDI and its shareholders." As part of his long-term commitment to CDI, Freidheim will be relocating to the Philadelphia area with his family.
He is the fifth CEO in the 64-year history of CDI Corp. The Board of Directors hired Gayle Mattson, a widely respected consultant, to conduct the search.
CDI Corp. (NYSE: CDI) is an integrated, market-leading engineering and technology services firm providing differentiated, client-focused solutions in select global industries. CDI provides engineering and technology solutions and professional staffing services through its global business operations. The Company also provides staffing services through its franchised Management Recruiters International, Inc. (MRI) operating unit. Learn more at http://www.cdicorp.com/.
Caution Concerning Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that address expectations or projections about the future, including, but not limited to, statements about our future financial results, are forward-looking statements. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions that are difficult to predict. Because these forward-looking statements are based on assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual outcomes and results may differ materially from what is expressed in these forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to: weakness in general economic conditions and levels of capital spending by clients in the industries we serve; weakness or volatility in the financial and capital markets, which may result in the postponement or cancellation of our clients' capital projects or the inability of our clients to pay our fees; the termination or non-renewal of a major client contract or project; delays or reductions in government spending; credit risks associated with our clients; our level of success in attracting, training and retaining qualified management personnel and other staff employees; the availability and cost of qualified billable personnel; competitive market pressures; changes in tax laws and other government regulations including the impact of healthcare reform laws and regulations; the possibility of incurring liability for our business activities, including the activities of our temporary employees; our performance on client contracts; negative outcome of pending and future claims and litigation; and government policies, legislation or judicial decisions adverse to our businesses. More detailed information about these and other risks and uncertainties may be found in our filings with the SEC, particularly in the "Risk Factors" section of our Form 10-K and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of our Form 10-Ks and Form 10-Qs. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We assume no obligation to update such statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE CDI Corp.