Samir Gibara, 64, Goodyear's board chairman since July 1, 1996, will resign, effective June 30, and will be succeeded by President and CEO Robert Keegan.
Subject to Mr. Keegan's discretion, Mr. Gibara could remain on Goodyear's payrolls as a consultant, according to Goodyear's 10K filing, with a salary of $180,000 plus travel expenses. The term of that agreement was to last from Jan. 1 to Dec. 31, though either Mr. Keegan or Mr. Gibara could terminate it early, a spokesman said. Mr. Gibara will not remain as a director on the board.
The announcement, made at the annual shareholder's meeting May 7 in Akron, marks the completion of the leadership transition process that began in October 2002 when Mr. Keegan, 55, was named CEO, effective Jan. 1.
``Over the course of these two years, Bob has quickly learned the industry and demonstrated his leadership abilities,'' Mr. Gibara said in a prepared statement. ``He has effectively taken on the leadership role as CEO since January and has earned the confidence of the board, the company's leadership, customers and associates.''
Mr. Keegan said he has confidence in Goodyear's people, products and turnaround plan.
``I relish the challenge, and I believe deeply in the future of this company,'' he told shareholders. ``But I don't underestimate the substantial hurdles that confront us.''
Goodyear also announced the creation of a ``presiding director'' position on its board as an enhancement to its governance model. James M. Zimmerman, chairman of Federated Department Stores Inc. and a Goodyear director since 2001, will serve in the position.