Board of Directors appoints Terry L. Dunlap as interim CEO as the company’s stock has lost more than half its value in a year.
CANTON Ward J. “Tim” Timken Jr. is stepping down as chief executive officer and president and as chairman of the TimkenSteel Board of Directors effective immediately. The board has appointed Terry L. Dunlap as the TimkenSteel’s ‘s interim chief executive officer and president.
John P. Reilly, the current lead director of the TimkenSteel Board of Directors, will immediately assume the role of chairman of the board.
“In an effort to revitalize both the near-term performance and long-term potential of TimkenSteel, now is the time for new leadership at the company. While stepping down as CEO is not an easy decision, it has been a true privilege for me to lead TimkenSteel on its journey as an independent public company,” Timken said. “As a member of the Timken family and CEO for the past five years, I want to thank all employees for their dedication and commitment. I am proud of what we have been able to accomplish together and remain confident in the long-term success of TimkenSteel.”
TimkenSteel stock closed at $6.02 a share Tuesday. It was $14.25 a share a year ago.
According to 2018 proxy statements, Timken made $4.7 million in total compensation, with most of that coming in stock and options. His base salary was $886,830 with a bonus of $309,870, $1.5 million in stock options and $1.9 million in stock. He received $125,358 in other compensation.
Dunlap has been a director of TimkenSteel since August 2015 and has served on the audit committee and compensation committee of the Board of Directors.
He spent 31 years with Allegheny Technologies Inc., a global specialty metals company, serving in various positions, most recently as executive vice president of ATI’s flat-rolled products group. He has experience in areas critical to improving TimkenSteel’s business, including sales, marketing, manufacturing and operations, supply chain, procurement and information technology.
Dunlap also serves on the boards of Matthews International and Ampco-Pittsburgh.
“I look forward to leading TimkenSteel and improving shareholder value by engaging with customers, suppliers and employees to improve operating performance and deliver consistent profitable growth at the company,” Dunlap said. “TimkenSteel has a strong portfolio of operating assets, high-quality products, and a dedicated and talented workforce. I am committed to working closely with the leadership team and all employees to build on the strengths of the company to achieve our long-term potential. The Board and I will be focusing on the greatest opportunities for success and capitalizing on the company’s strengths.”
“The board would like to thank Tim Timken for his service and leadership to the company, and we wish him well in his future endeavors.,” Reilly said. ” We are confident that Terry’s more-than 30 years of experience in the industry, with a track record of successful leadership and a deep knowledge of our business, uniquely positions him to lead TimkenSteel at this time.
“The board is committed to pursuing a strategy focused on strengthening TimkenSteel’s market position and generating shareholder value for the long term.”
Reilly is a founding member of TimkenSteel’s Board of Directors since the company’s spinoff in 2014 and also serves on the nominating and corporate governance committee and audit committee of the Board of Directors. Reilly has served as CEO of several companies and has served on the board of numerous public companies.