Softechie,REUTERS: Conseco names Gary Wendt as chairman, CEO
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Conseco names Gary Wendt as chairman, CEO
June 29, 2000 12:39 PM
By Bill Rigby
NEW YORK, June 29 (Reuters) - Conseco Inc. CNC named former General Electric Co. GE executive Gary Wendt as chairman and chief executive officer on Thursday, in an attempt to turn around the troubled No. 8 U.S. life insurer, whose stock has tumbled more than 90 percent in the past two years.
Wendt, 58, made his name at GE, where he built up its GE Capital unit into an international financial conglomerate, operating in markets spanning reinsurance, real estate, airplane leasing, credit cards and mortgages.
Conseco stock closed up 1-3/8, or 18 percent, to 9 on Thursday on the New York Stock Exchange. Shares hit a 9-year low of 4-1/2 last month, 91 percent below its value two years ago.
The stock was driven down by a host of problems stemming from its $6 billion purchase of personal loan firm Green Tree Financial two years ago. Conseco has been looking to sell the unit, now called Conseco Finance, since March.
"There's a challenge here, there are some things to be done, and I accept that challenge," said Wendt in a telephone conference call.
Wendt said he was familiar with Conseco -- which specialises in supplemental life and health insurance and also offers annuities and mutual funds -- from competing against the company in his time at GE Capital.
"I'm going to continue on the path prior management had, which was to consider all the options," said Wendt, adding that it was too early to comment on possible actions and the progress of sale talks on Conseco Finance.
Interim Conseco Chief Executive David Harkins told shareholders last week the company would complete a sale of the finance unit in the third quarter. But Wendt said Thursday he was not putting a time frame on the decision of what to do with the unit.
"I am delighted that the board has approved my first choice for the job," Harkins said in a statement. "Gary has clearly demonstrated the ability to run a major financial services company."
Harkins, president of buyout firm Thomas H. Lee Partners, which bought a 7 percent stake in Conseco last December, took the helm at Conseco in April after Stephen Hilbert, the founder and CEO, resigned, saying he had lost investors' confidence.
Wendt spent a total of 24 years at GE, and built up GE Capital's profits from about $300 million to $4 billion in 15 years as CEO, between 1984 and 1998.
Conseco was downgraded earlier this month by rating agency A.M. Best over concerns about its failure to sell the finance unit.
Wendt, a native of Rio, Wis. and a Harvard Business School graduate, ran his own investment fund after leaving GE. He said Thursday that fund would continue operating.
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