Shandwick's operations in the Americas named three key executive changes last week. The moves appear to be among the spin-off results of ambitious revamping efforts Shandwick (whose parent company is based in London) is pushing to unite its dozens of U.S. offices - businesses that were acquired through the years.
Previously, these companies functioned as a collection of separate branded entities in a regional structure that's being nixed.
The recent personnel shifts include the new managing director of its New York operation and the partnering of two Shandwick veterans to head its national consumer marketing practice.
Sources close to Shandwick say the company has been working to increase its competitive edge by building its two A-list umbrella brands: Shandwick and Golin-Harris. Earlier this year, it announced that it is involved in third-party discussions about selling a majority or minority stake in the company to raise capitalization.
Shandwick execs wouldn't comment further about how those discussions are progressing.
In New York, all three of the execs were promoted from within Shandwick. Two of them are long-time employees:
- Stephen R. Conafay has been promoted from a senior counselor, healthcare, to managing director of the New York office. He replaces Daniel G. O'Connell, who left about a month ago based on a mutual decision over conflicting business goals; and
- Linda Recupero, executive VP and creative director of the New York office's consumer marketing business, will work with Jorg Pierach, senior VP of Shandwick's consumer marketing practice in Minneapolis. They are filling the slot left when Cliff Berman stepped down after five months with the company to return to Edelman in New York.
Although Shandwick execs won't comment in detail about the recent moves, they did admit that the company is hoping to grow its brand, specifically in the U.S. where it has about 800 employees and a coveted Microsoft account. To manage that account, Shandwick opened about 18 months ago a Seattle office staffed with about 35 pros.
On the East Coast, branding plans include buying or partnering with smaller PR houses or related networks in the New York region. Shandwick of the Americas posted $126.9 million in operating income in 1997 - a healthy increase over 1996's $112.1 million.
Selling the Shandwick Name
Shandwick is the only major publicly held PR conglomerate and it has been rumored in the past few years that the company is exploring ways of increasing its profits by recruiting new clients and senior-level employees.
Now, it's reportedly banking part of that success on bolstering its New York site which recently relocated to tony Park Avenue South.
"We are now the 16th largest agency in New York and our goal is to be in the top 10 in the next year," says Scott Meyer, CEO of Shandwick, Americas.
Meyer is one of the new board members who new Executive Chairman Lord Chadlinton has annointed to reinvent the company. Former CEO Dermot McNulty agreed to leave Shandwick in February so Shandwick could tap someone with more of a financial/business management background.
Meyer was appointed a Shandwick director in February along with Golin Harris CEO Rich Jernstedt. The team has been given carte blanche to manage Shandwick's two global brands: Shandwick International and Golin Harris International.
Previously, Larry Kaplan managed those brands in the U.S. He, too, left in February.
Why'd They Walk Out?
O'Connell's hasty departure surfaced just several weeks before the surprise April 27 resignation of Berman. Berman was recruited to head Shandwick's consumer marketing practice out of New York. Several Edelman employees confirmed last week that Berman has returned to Edelman.
O'Connell left after a mutual agreement that his plans for the New York office weren't in sync with Shandwick's goals to "connect virtual offices." That philosophy mirrors what other agencies have done to focus on servicing accounts regardless of where the client is based and by tapping into whatever geographic expertise is needed.
(Scott Meyer, 212/686-6666; Michael Petruzzelo, 202/383-9700; Doug van Aman, 425/452-5400)
| Shandwick's Operating Profit & Income (1996-1997) | ||
| Operating Income | 1997 | 1996 |
| Americas | $126.9 million | $112.1 |
| United Kingdom | $409.1 | $427.5 |
| Continental Europe | $15.8 | $18.5 |
| Asia Pacific | $26.6 | $28.6 |
| Operating Profit | 1997 | 1996 |
| Americas | $15.7 million | $14.4 |
| United Kingdom | $4.1 | $6.1 |
| Continental Europe | $1.0 | $1.1 |
| Asia Pacific | $1.8 | $2.1 |
| Source: Shandwick | ||