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MSC Industrial Direct Company Inc., one of the largest direct marketers and premier distributors of metalworking and maintenance, repair and operations (MRO) supplies to industrial customers throughout the United States, on October 21 announced its management succession plan for the position of chief executive officer.
Under the succession plan, David Sandler, president and CEO, will continue in his current role through December 31, 2012, or no later than December 31, 2013 as determined by the company's board of directors. Erik Gershwind, executive vice president and chief operating officer, has been identified by the company's board of directors as the successor to Sandler as the company's CEO.
Upon his transition from the position of CEO, Sandler will serve as vice chairman of the company's board of directors until at least the end of calendar 2016 or potentially longer. The company has entered into a long term succession agreement to retain and incentivize Sandler. The terms and details of the agreement are available in an 8-K which was filed on October 21.
There are no changes to management roles or responsibilities and no other executive leadership changes at this time.
Sandler commented, "I am gratified and humbled to continue to have the board's confidence in affirming my long term leadership role at MSC. While my desire in the coming years will be to eventually spend more time with my family, MSC has not only represented a career to which I remain deeply committed but an important part of my life as well. Our effective succession management process, commitment to strong corporate governance and track record of successfully transitioning leadership seamlessly makes MSC a company that is built to last."
The company also announced that Gershwind has been elected to the company's board of directors. This election brings the number of directors on the company's board to nine, of which five are independent directors.
Philip Peller, lead director of the board of directors, said, "Over his 14-year career at MSC, Erik has worked through positions of increasing responsibility, and is a key contributor to our current strategy and success. Our board of directors has complete confidence in Erik and we are delighted to welcome him as our newest member of the board."
Sandler concluded, "I'd like to congratulate Erik on his appointment to the board and look forward to continuing to work closely with him in the years to come as he continues to grow in his role and builds upon his track record of leadership and key successes. Our shared vision and values provide a solid foundation from which we will continue to execute on our growth strategy and drive toward long-term value creation for all stakeholders."
Sandler, age 53, was appointed president and CEO in November 2005. He previously served as chief operating officer from November 2000 to November 2005 and was promoted from executive vice president to president in November 2003. In June 1999, he was appointed as a member of the company's board of directors. Sandler previously served as senior VP for administration and from 1989 to 1998 held various positions of increasing responsibility throughout the company. Sandler joined MSC in 1989 as a result of the acquisition of Dancorp Inc., a New England-based industrial supply distributor, where he was a founder and served as president and CEO.
Gershwind, age 39, was appointed executive VP and COO in October 2009. Prior to that, he was senior VP for product management and marketing since December 2005. Prior to this appointment, he held various positions of increasing responsibility in business development, sales management, branch integration, and eCommerce at the company. Gershwind joined MSC in 1996 as manager of the company's acquisition integration initiative, and in 1999 established MSC's highly successful Internet business as director of e-commerce.
About MSC Industrial Direct Company Inc.
MSC is one of the largest direct marketers and premier distributors of metalworking and MRO supplies to industrial customers throughout the United States. MSC distributes approximately 600,000 industrial products from approximately 3,000 suppliers to approximately 320,000 customers.