Teneo has appointed former Xerox boss Ursula Burns as its new chairman because the public relations firm scrambled to reassure its Fortune 500 clients after its long-time leader resigned due to allegations of misconduct.

Her appointment on Tuesday was a few days after Declan Kelly, who co-founded the company in 2011, Resigned as chairman and chief executive officer After the British “Financial Times” disclosed allegations that he improperly contacted six women during a charity event in May.

Teneo has been scrambling to stabilize himself GM canceled In response, a contract of US$250,000 per month was recently signed, which exacerbated concerns about the loss of other important customers and employees who are worried about the company’s future.

Kelly, who originally planned to remain in power, resigned last week and stated in a statement that he committed “an unintentional, public and embarrassing mistake, for which I take full responsibility and to those directly affected as well as My colleagues and colleagues apologize”. client”.

Kelly’s withdrawal was only seven months later Doug Bender’s departure, A former aide to US President Bill Clinton, he founded this business with him.

Burns is a rare African-American corporate leader in the United States, and has served on the board of directors of companies such as Exxon Mobil and Uber. Since resigning from Xerox in 2017, he has been a senior advisor to Teneo.

After the allegations came to light, Burns told the New York Times: “This is a friend of mine. He must have encountered a bad thing-he has to deal with this problem, and he is dealing with this problem, we will continue to move forward. .” The two are raising funds for a private equity firm called Integrum. They launch together In April with two other partners.

Burns said in a statement: “I have a deep understanding of this business and customer needs, and I would like to express my sincere gratitude to all the great Teneo professionals around the world.”

Another Teneo co-founder, Paul Keary, who was appointed as CEO last week, said in an internal memo announcing the appointment of Burns: “I realize that the recent events are difficult for everyone.”

He added: “We have received support from so many customers and friends, and I am very excited.”

Teneo’s troubles have also put pressure on the private equity group CVC Capital Partners, which has injected at least $450 million into the company since becoming its majority shareholder in 2019.

Christopher Stadler, the head of CVC’s North American business, oversees Teneo’s investment and is also the co-chairman of the charity Global Citizen, which held a Vax Live concert on May 2nd. Kelly was suspected of misconduct It happened there.

Teneo bills itself as the world’s leading CEO consulting company, and its clients include Coca-Cola, General Electric, and Tesco. After completing the acquisition of Deloitte’s UK restructuring business last month, the company has 1,250 employees and revenues of nearly US$400 million.


Source link

Leave a Reply