Ross Stores announced that its Board of Directors has approved an updated long-term management succession plan. This includes the company's entry into a new employment agreement with Michael Balmuth, Vice Chairman and Chief Executive Officer, extending through May 2016.
The agreement calls for Balmuth, 62, to continue as CEO until June 1, 2014, when he will become Executive Chairman. At the same time, the Board expects to elect a new Chief Executive Officer from the company's bench of senior executives. The new CEO will report directly to the Board of Directors and assume responsibility for most areas of the business.
In his new role as Executive Chairman, Balmuth will remain an active employee of the company with property development and dd's Discounts continuing to report to him. Norman Ferber, the company's Chairman of the Board, will become Chairman Emeritus in June 2014, with his current consulting responsibilities to remain unchanged.
Commenting on behalf of the Board, Norman Ferber said, "Michael Balmuth is an exceptional CEO whose leadership has been instrumental to our long-term success. He has built a team of very knowledgeable and seasoned executives who have been extremely proficient in developing and executing the right strategies for our business. This succession plan will enable us to continue to benefit from Michael's more than two decades of significant management experience at Ross, while helping to ensure a seamless transition."
Michael Balmuth, Vice Chairman and Chief Executive Officer commented, "I have been privileged to work with outstanding people at Ross Stores for the past 23 years – 16 of those as CEO. The Board and I firmly believe this type of management transition will allow us to remain focused on executing the strategies that have been key to our outstanding financial results over the past several years. We are also confident this succession plan will help us continue to maximize future stockholder returns."
Ross Stores is a chain of American off-price department stores headquartered in Pleasanton, California. It operates stores in USA and Guam.