This is from Forbes.com:
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Douglas Pertz’s arrival at
Harman International Industires less than four months ago was inauspicious: the audio electronics maker’s stock fell 10% the day after the announcement in April, although you could attribute that to a 4-cent-per-share earnings miss that was reported at the same time.
Still, you have to wonder why a guy with a resume that included a paper company and a salt maker was named chief executive of a consumer-electronics concern.
One analyst wondered aloud on the company’s quarterly earnings conference call, and founder Sidney Harman sounded pretty sure of his choice. “We vetted this guy quite thoroughly,”
Harman International (nyse:
HAR -
news -
people ) said. “The thing that I thought separated Doug from the rest was experience.”
Thing is, the experience wasn’t in electronics, as Harman acknowledged. “We have a very interesting business. It is almost impossible to imagine finding a chief executive officer with significant technical experience in the particular field of our engagement. And so what we look for is a literacy in that arena and we found it flourishing in Doug Pertz.”
Fast forward to Tuesday, and the company had changed its, um, tune: “Doug Pertz is a man of integrity and talent, and we wish him well in his future endeavors,” it said in a news release, announcing his rapid departure, which, Harman said, came about by mutual agreement..
On Tuesday, Banc of America Securities analyst Ronald Tadross said his checks at the time Pertz took the helm "gave us reservations about the relevance of his experience, and we think this course correction will free Harman to appoint a more suitable candidate."
Maybe, but you could excuse shareholders for being impatient; the company’s stock, which closed at $102.20 the day before Pertz’s appointment was announced is down to $81.26, the last 4% of that slide occurring on Tuesday.
Meanwhile, Kevin Brown, Harmon's chief financial officer, will take over as vice chairman and keep his role as CFO, the company said.
A company spokesman reached via telephone Tuesday said Harman doesn't know what Pertz's future plans are.