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."
- 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?