| On waiting for a world-class CEO 1/16/00 - It is possible that Ocean Spray will continue the search for a new CEO. Unless decisive action is taken to reassure Wall Street that the company is on track, this is likely to lead to a severe downgrading of the Ocean Spray credit rating. More devastating to the Ocean Spray family is the continued lack of effective leadership at the top, which is likely to lead to ill advised business decisions and poor morale. When the Board meets in Chicago on January 20th, if there is no CEO ready to come on board in a few weeks, it is crucial that an interim CEO be appointed to guide the company until a top notch permanent CEO can be hired. Tom Bullock must not continue as CEO. The Board should appoint the best possible executive from within the company as interim CEO. * He should be charged with the mission of strengthening the company by maximizing sales through cost-effective targeted advertising, assuring that the distribution system functions properly, and exploring every avenue for increasing returns to the growers this year. He should maximize the value of Ocean Spray regardless of whether the new board decides to explore the option of sale or merger. The interim CEO should have broad authority to hire and fire within the executive ranks and to bring in consultants as he sees fit. He should not, however, be allowed to close plants or cut back on the work force. Decisions of this magnitude, effecting hundreds of loyal employees and their families, should be left to the permanent CEO and the Board. With a competent and trustworthy interim CEO in charge, who has the full faith of the Board, the grower/owners and the employees, there should be no reason to rush to hire a permanent CEO. We have waited this long for a CEO and with a competent interim CEO in charge, the Board shoudn't set an arbitrary date like the Annual Meeting for having a new CEO in place. It is imperative that Ocean Spray hires a world-class CEO with the focus, acumen, leadership skill, and - yes - vision, to make Ocean Spray a world class company. It should be a foregone conclusion that first modern Ocean Spray Board to be elected all at the same time will have wide grower support. With this support, the board should set as a second priority, after hiring a new CEO, the change in the By Laws so that a 2/3rds majority is all that is needed to approve a sale of the company. Whether it is through sale, merger, or another means, Ocean Spray must have a strategy to compete in the global marketplace, or they will be an also-ran in the 21st century. HB * Addendum: Another option is to elect a new Chairman of the Board from the eleven nominated grower/owners; and to appoint him as interim CEO.
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