6/30/00 Article from Dow Jones
NEW YORK -- Conseco Inc.'s (CNC) new Chairman and Chief Executive Gary C. Wendt said Thursday he hasn't yet decided how to tackle the planned sale of the insurance company's consumer finance unit, Conseco Finance.
Asked by journalists on a conference call if he was reconsidering the disposal of all or part of the business, Wendt said, "I intend to continue the path of prior management of considering all options."
Wendt, who was named to Conseco's top post earlier Thursday, broke away from his honeymoon for a few hours to meet with management and employees at the company's headquarters in Carmel, Ind.
The incoming CEO, who declined to comment on his compensation package, said he took the job because he was attracted by the challenge of putting Conseco's financial house back in order.
"Getting the ship headed in the right direction again, so investors can look to us with consistency, is something that will stimulate me in not only the short but long term," he said.
As reported earlier Wednesday by Dow Jones Newswires, people familiar with the matter say Wendt has agreed to forego two years' salary in exchange for a chance to pick up Conseco shares later, as well as a bonus should the company's shares keep climbing.
Conseco shares closed at 9 Thursday, up 1 3/8, or 18%.
Wendt said he expressed an interest in the job just days after former Chairman and CEO Stephen Hilbert resigned in late April, about the same time the interim management team put out feelers to him. "Our letters crossed in the mail," he said.
Conseco is still looking for someone to replace former Chief Financial Officer Rollin Dick, who left along with Hilbert.
Wendt said he gained some familiarity with Conseco during his 15-year tenure at General Electric Co.'s (GE) GE Capital Services, because the two companies would often discuss buying and selling various properties.
"From that knowledge I had in the past I know within Conseco there are some very good basic businesses," Wendt said.
Still, he said he needs some time to study Conseco's options before deciding how to proceed.
In a few weeks Wendt and his wife will be moving to Indiana from Connecticut, where he has been raising capital for a private equity fund since resigning from GE Capital in December 1998. He said his former partners will continue the enterprise.
Although he joked about being able to find Carmel, Wendt is familiar with that part of the country.
"I grew up in Wisconsin, and this doesn't look that much different from first view," he said.
-By Allison Bisbey Colter, Dow Jones Newswires; 201-938-5298; allison.bisbey-colter@dowjones.com
By Allison Bisbey-Colter
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I haven't heard of the CC before. Anyone?
Jack |
