Key operating and financial execs are latest to depart
CHESAPEAKE, Va. – Dollar Tree Inc. today announced the departures of key operating and financial executives, a shake-up that the company said was made to support implementation of its turnaround initiatives.
Dollar Tree said it is seeking candidates to replace chief operating officer Thomas O’Boyle, chief legal officer William Old, chief strategy officer David Jacobs and chief information officer Andy Paisley.
The press release announcing the departures also said that Kevin Wampler, Dollar Tree’s chief financial officer, will be leaving but will stay on until April and transition out of the role once a successor is appointed and brought up to speed.
“As we look to the future, I believe these changes within our leadership team will bring new perspectives and experiences that will help accelerate our continued growth and deliver even greater value for our shareholders, customers, employees and suppliers,” Mike Witynski, Dollar Tree’s president and chief executive officer, said in the announcement.
Witynski in March reported that the discount retailer had completed a “transformative” fourth quarter as it converts to a $1.25 price point across its stores. Witynski said the transition will enhance Dollar Tree’s ability to diversity its product offerings and provide customers with more of their daily essentials.
Also in March, Dollar Tree announced a shake-up of its board of directors, with former Dollar General Corp. CEO Richard Dreiling assuming the role of executive chairman, the board’s top post. Also added to the board were Paul Hilal, CEO of private equity firm Mantle Ridge LP, as vice chair, along with five other new directors. Former chairman and CEO Bob Sasser and five other directors retired from the board.
Those moves followed pressure late last year from activist investor Mantle Ridge — Dollar Tree’s third-largest shareholder — to completely replace the retailer’s board with a slate of 11 nominees. Dollar Tree’s management criticized the proposed slate as “drawn from boards of companies at which Mantle Ridge is highly influential, if not in total control, hardly a model of good corporate governance.”
As part of today’s announcement, Dreiling said, “Our board is fully aligned with Mike that now is the right time to bring in new leadership to ensure the company remains on a strong trajectory.”
Sales were up more than 6% in the most-recent quarter, and the company today reiterated its recently upgraded full-year outlook for sales and earnings.
Dollar Tree operates more than 15,500 stores across the 48 contiguous states and five Canadian provinces, supported by a coast-to-coast logistics network and more than 200,000 associates. Stores operate under the brands of Dollar Tree, Family Dollar, and Dollar Tree Canada.