Wow, things sure are getting interesting at Starwood.
Continue reading: Starwood Appoints New CEO For 2nd Time This Year
Share your questions, experiences, and thoughts below.
Definitely surprising as transitional CEO's usually have a compensation package explicitly structured to make it worth their while to stay on for the length of the role, given that it's not ideal in general to be a temporary CEO.
It's also possible he was hoping for a different outcome (i.e. different buyer than Marriott) and a combination of an unpleasant merger for him and lucrative package from AMC made it worth any losses from leaving Starwood.
I am pretty sure he was promised a very nice bonus once he is booted out after the merge.
Bonus or not, if he was transitional, he was clearly looking for the next thing. And when it happened, he jumped.
He might not necessarily be booted after the merger and here is why: After the merger they will have the biggest hotel chain in the world. Seeing how different the loyalty programs are starwood might remain a different entity portfolio of its own while keeping their point system the same. And if Marrirot loyalist want to transfer to starwood and vice versa we could see a 3:1 marriot -> starwood or, a 1:3 starwood->marriot interchangeably whenever, which would make the programs even more flexible than they are and allow everyone to have what they want in their program. One can dream at least...although I think this is the best option to keep both customers happy and fairly attainable.
The merger will probably be the longest one we have seen before it is smooth sailing again and Marriot needs someone high up on Starwood's team to help the merger come together.
He will be booted from the role of CEO. Or you guys think the new CEO once nboth companies are integrated will be the Starwood one? When a company is acquired by another one the message is very clear: WE acquired you!!!! Basically means: Shut up and do what I say. 🙂
As I see it, Aron was a board member who took over the reigns of CEO because he happened to have some time to take this on. His main business interest at the time seemed to be the 76ers. Now that the merger has been decided, and he has an offer for a role at AMC which will be a career focus, there is no reason for him to stick around at Starwood. Is he still on the board? The CFO takes over to deal with the operational issues associated with the merger and it is for him that the performance bonus would matter. Just a guess, not based on any actual knowledge other than what we've all been following.
The part of the merger including negotiations are done, so the old CFO is taking over when the more operational and financial parts of the merger are worked on. Makes sense.
"Or maybe there’s more to the story...."
How right you are. A seven year story of hollowing the brand and a major B of D cover-up.
Aron's departure is called "getting out while the going's good" - and before the lawsuits begin!