Tyson Foods CEO Bond resigns
Executive started with IBP in 1980
By Dave Dreeszenddreeszen@siouxcityjournal.com
and The Associated Press | Posted: Tuesday, January 06, 2009
DAKOTA DUNES -- In an abrupt move, Tyson Foods president and CEO Dick Bond stepped down from his posts Monday, describing the decision as in the "best interest'' for himself and the world's largest meat company, plagued recently by a sharp industry downturn.
Bond, who spent two decades as an executive with IBP prior to the Dakota Dunes-based company being acquired by Tyson in 2001, succeeded John Tyson as Tyson CEO in May 2006. In a statement Monday, the company said Bond, whose resignation was effective immediately, would be replaced on an interim basis by former Tyson chairman and CEO Leland Tollett.
Tyson, the largest employer in metro Sioux City, declined comment on whether its board asked Bond to leave. His employment contract was set to run through Dec. 31.
Tyson's stock has eroded in the past year as the meat industry suffered, not only because of high costs for corn and other feedstocks, but also from weak restaurant business as consumers cut back on eating out.
In a note to clients, D.A. Davidson & Co. analyst Tim Ramey said, "If things were good, Bond would have kept his job."
Ramey said he suspects the Tyson family, which still controls a large portion of the company, didn't like Bond's strategy of boosting chicken production levels even as competitors curbed production in the past year to boost pricing.
Tollett, the former Tyson CEO, began working for Springdale, Ark.-based Tyson in 1959 and was part of a close-knit management team including Don Tyson that aggressively grew the company from a regional poultry producer into the world's largest meat company.
Bond, 61, who joined IBP in 1980, was among a group of top executives who led an attempted leveraged buyout of the beef and pork company in 2000. A year later, Tyson, the largest U.S. chicken producer, acquired IBP for $4.7 billion.
At the time of the sale Bond was IBP's president and chief operating officer. After the deal closed, he transferred to Tyson's northwest Arkansas headquarters, where he ran the fresh meats and retail division and later served as the company's chief operating officer.
As CEO he retained a commitment to Siouxland. During a visit last May, he knocked down rumors related to closing or downsizing the company's fresh meats division based in Dakota Dunes.
"I can tell you right now, matter of factly, that we're not going anywhere," Bond told a group of business leaders. "It would be silly, in my opinion, to try and uproot and move 600 people to Arkansas when we've got a great team here, in a great facility and in a great community.''
Counting its Dakota Dunes offices and its flagship beef plant in Dakota City, Tyson employs about 4,400 in the metro area.
Earlier in his IBP career, Bond served as a group vice president for beef and marketing, noted retired IBP and Tyson executive Gene Leman, who arrived at IBP's Dakota City offices a year after Bond.
Throughout his tenure, Bond provided a great service to the beef segment, adding substantial value to producers and consumers alike, Leman said.
"He has lots of good friends and lots of good customers,'' Leman said in a phone interview from southern Florida Monday. "He was a real leader in the industry and we're going to miss that input."
In the company's fiscal 2008 year, Bond did not receive a bonus under Tyson's "earnings-based'' or "goals-based'' plans, according to the proxy statement filed by the company on Dec. 30. Largely because the value of stock and stock options he was awarded plunged, his compensation tumbled from about $12.9 million in 2007 to $4.9 million in 2008.
Tyson shares finished 2008 down 42 percent and on Monday the stock fell more than 10 percent, or 99 cents, to $8.36 after news of Bond's resignation.
Richard "Dick" Bond
Age: 61
Family: Wife, Bettie, six children
Tyson Foods career -- Transferred to Tyson's headquarters in Springdale, Ark. following company's acquisition of IBP in 2001. Named CEO in May 2006, succeeding John Tyson. Resigned post, effective immediately, on Monday.
IBP career highlights -- Joined Dakota City-based meatpacker's corporate staff in 1980. Named IBP's executive vice president of beef division in 1994, president in 1995 and chief operating officer in 1997.
2008 compensation: $4.9 million, down from $12.7 million the previous year.
Bond, who spent two decades as an executive with IBP prior to the Dakota Dunes-based company being acquired by Tyson in 2001, succeeded John Tyson as Tyson CEO in May 2006. In a statement Monday, the company said Bond, whose resignation was effective immediately, would be replaced on an interim basis by former Tyson chairman and CEO Leland Tollett.
Tyson, the largest employer in metro Sioux City, declined comment on whether its board asked Bond to leave. His employment contract was set to run through Dec. 31.
Tyson's stock has eroded in the past year as the meat industry suffered, not only because of high costs for corn and other feedstocks, but also from weak restaurant business as consumers cut back on eating out.
In a note to clients, D.A. Davidson & Co. analyst Tim Ramey said, "If things were good, Bond would have kept his job."
Ramey said he suspects the Tyson family, which still controls a large portion of the company, didn't like Bond's strategy of boosting chicken production levels even as competitors curbed production in the past year to boost pricing.
Tollett, the former Tyson CEO, began working for Springdale, Ark.-based Tyson in 1959 and was part of a close-knit management team including Don Tyson that aggressively grew the company from a regional poultry producer into the world's largest meat company.
Bond, 61, who joined IBP in 1980, was among a group of top executives who led an attempted leveraged buyout of the beef and pork company in 2000. A year later, Tyson, the largest U.S. chicken producer, acquired IBP for $4.7 billion.
At the time of the sale Bond was IBP's president and chief operating officer. After the deal closed, he transferred to Tyson's northwest Arkansas headquarters, where he ran the fresh meats and retail division and later served as the company's chief operating officer.
As CEO he retained a commitment to Siouxland. During a visit last May, he knocked down rumors related to closing or downsizing the company's fresh meats division based in Dakota Dunes.
"I can tell you right now, matter of factly, that we're not going anywhere," Bond told a group of business leaders. "It would be silly, in my opinion, to try and uproot and move 600 people to Arkansas when we've got a great team here, in a great facility and in a great community.''
Counting its Dakota Dunes offices and its flagship beef plant in Dakota City, Tyson employs about 4,400 in the metro area.
Earlier in his IBP career, Bond served as a group vice president for beef and marketing, noted retired IBP and Tyson executive Gene Leman, who arrived at IBP's Dakota City offices a year after Bond.
Throughout his tenure, Bond provided a great service to the beef segment, adding substantial value to producers and consumers alike, Leman said.
"He has lots of good friends and lots of good customers,'' Leman said in a phone interview from southern Florida Monday. "He was a real leader in the industry and we're going to miss that input."
In the company's fiscal 2008 year, Bond did not receive a bonus under Tyson's "earnings-based'' or "goals-based'' plans, according to the proxy statement filed by the company on Dec. 30. Largely because the value of stock and stock options he was awarded plunged, his compensation tumbled from about $12.9 million in 2007 to $4.9 million in 2008.
Tyson shares finished 2008 down 42 percent and on Monday the stock fell more than 10 percent, or 99 cents, to $8.36 after news of Bond's resignation.
Richard "Dick" Bond
Age: 61
Family: Wife, Bettie, six children
Tyson Foods career -- Transferred to Tyson's headquarters in Springdale, Ark. following company's acquisition of IBP in 2001. Named CEO in May 2006, succeeding John Tyson. Resigned post, effective immediately, on Monday.
IBP career highlights -- Joined Dakota City-based meatpacker's corporate staff in 1980. Named IBP's executive vice president of beef division in 1994, president in 1995 and chief operating officer in 1997.
2008 compensation: $4.9 million, down from $12.7 million the previous year.
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