hjames
05-30-2008, 09:17 PM
By Thomas Heath -
Washington Post Staff Writer
Friday, May 30, 2008; Page D01 (http://www.washingtonpost.com/wp-dyn/content/article/2008/05/29/AR2008052903579.html?hpid=sec-tech)
Sidney Harman said yesterday he will retire in July as chairman of Harman International Industries, ending a five-decade tenure as the head of the high-end sound equipment maker he founded here.
"I have worked hard to ensure the constructive continuation of this company in both spirit and in its direction," Harman said in an interview. "I hired a chief executive officer, watched him thoroughly for a year and concluded he is up to it."
That chief executive, Dinesh C. Paliwal, will take over as chairman when Harman International's fiscal year begins July 1.
"I have a big challenge to build on a legacy of innovation and a legacy of integrity and community involvement," Paliwal said.
Harman, 89, will keep a seat on his company's board of directors until Dec. 3, after which he will retain the title of founder and chairman emeritus.
Harman International has undergone big changes recently. Paliwal moved its headquarters from Washington to Stamford, Conn. A few weeks ago, he announced a new finance chief and auto division head. Both hires are designed to expand the company's presence into such emerging markets as Brazil, Russia, India and China,
Harman will maintain an office and small staff in Washington.
"I will continue to be available to the company, first as its chairman through the end of June and then through the board through the beginning of December," he said. "After that, as needed, I would expect to applaud as this company progresses."
Harman said he is the largest single shareholder in the company, voting 3.5 million shares. To mark his departure, he is setting up a trust funded with a $2.5 million gift that will pay for three to five scholarships a year for children and grandchildren of Harman employees.
Harman was deputy commerce secretary under President Jimmy Carter and is the author of two workplace books. He plans to write more books and will become the first Judge Widney Professor of Business at the University of Southern California, named for USC founder Judge Robert Maclay Widney.
The position will allow him to teach at USC's undergraduate college of arts and sciences, as well as in the schools of law, medicine, business, public policy "and of course gerontology," he said. Harman's 90th birthday is in August.
Harman and his wife, Rep. Jane Harman (D-Calif.) live in Cleveland Park in Northwest Washington.
The Harmans are active in Washington's social, political and arts circles. The Harman Family Foundation gives to such local institutions as the Washington Ballet and the Phillips Collection art museum. His $20 million pledge helped build the new Harman Center for the Arts in downtown Washington.
Harman International is a multibillion-dollar manufacturer of high-end sound equipment for cars and consumers. The company makes Harman Kardon, Infinity and JBL audio equipment. The company has more than 11,000 employees and had more than $3.5 billion in sales in the year ended June 30.
The company has had a bumpy few years. Douglas A. Pertz was hired as chief executive in 2006 and left a few months later. Private-equity giant Kohlberg Kravis Roberts offered to buy Harman International for $8 billion last year, only to withdraw the offer a few months later, leaving Harman at the helm of the company he founded in 1953.
"This is the right time to put a period to that half-century and a good time to begin my next half-century," he said as he boarded a jet in Los Angeles.
Washington Post Staff Writer
Friday, May 30, 2008; Page D01 (http://www.washingtonpost.com/wp-dyn/content/article/2008/05/29/AR2008052903579.html?hpid=sec-tech)
Sidney Harman said yesterday he will retire in July as chairman of Harman International Industries, ending a five-decade tenure as the head of the high-end sound equipment maker he founded here.
"I have worked hard to ensure the constructive continuation of this company in both spirit and in its direction," Harman said in an interview. "I hired a chief executive officer, watched him thoroughly for a year and concluded he is up to it."
That chief executive, Dinesh C. Paliwal, will take over as chairman when Harman International's fiscal year begins July 1.
"I have a big challenge to build on a legacy of innovation and a legacy of integrity and community involvement," Paliwal said.
Harman, 89, will keep a seat on his company's board of directors until Dec. 3, after which he will retain the title of founder and chairman emeritus.
Harman International has undergone big changes recently. Paliwal moved its headquarters from Washington to Stamford, Conn. A few weeks ago, he announced a new finance chief and auto division head. Both hires are designed to expand the company's presence into such emerging markets as Brazil, Russia, India and China,
Harman will maintain an office and small staff in Washington.
"I will continue to be available to the company, first as its chairman through the end of June and then through the board through the beginning of December," he said. "After that, as needed, I would expect to applaud as this company progresses."
Harman said he is the largest single shareholder in the company, voting 3.5 million shares. To mark his departure, he is setting up a trust funded with a $2.5 million gift that will pay for three to five scholarships a year for children and grandchildren of Harman employees.
Harman was deputy commerce secretary under President Jimmy Carter and is the author of two workplace books. He plans to write more books and will become the first Judge Widney Professor of Business at the University of Southern California, named for USC founder Judge Robert Maclay Widney.
The position will allow him to teach at USC's undergraduate college of arts and sciences, as well as in the schools of law, medicine, business, public policy "and of course gerontology," he said. Harman's 90th birthday is in August.
Harman and his wife, Rep. Jane Harman (D-Calif.) live in Cleveland Park in Northwest Washington.
The Harmans are active in Washington's social, political and arts circles. The Harman Family Foundation gives to such local institutions as the Washington Ballet and the Phillips Collection art museum. His $20 million pledge helped build the new Harman Center for the Arts in downtown Washington.
Harman International is a multibillion-dollar manufacturer of high-end sound equipment for cars and consumers. The company makes Harman Kardon, Infinity and JBL audio equipment. The company has more than 11,000 employees and had more than $3.5 billion in sales in the year ended June 30.
The company has had a bumpy few years. Douglas A. Pertz was hired as chief executive in 2006 and left a few months later. Private-equity giant Kohlberg Kravis Roberts offered to buy Harman International for $8 billion last year, only to withdraw the offer a few months later, leaving Harman at the helm of the company he founded in 1953.
"This is the right time to put a period to that half-century and a good time to begin my next half-century," he said as he boarded a jet in Los Angeles.