Tiger International Picks New CEO
Tiger International, the Los Angeles-based transportation firm struggling to return to sustained profitability, announced Wednesday that Robert P. Jensen would assume day-to-day managerial responsibilities as president and chief executive.
Jensen, 59, currently a Tiger director and chairman of E. F. Hutton-LBO, a Santa Barbara-based investment firm affiliated with the brokerage, will replace Wayne M. Hoffman, 62. Hoffman, Tiger chairman since 1970, will continue in that post with responsibilities for corporate strategy and policy until his company-mandated retirement at age 65.
“This move is a continuation of our management succession plan,” said Hoffman, who plans to retain the positions of chairman and president of Tiger’s air-cargo subsidiary, Flying Tiger Line, although Jensen will be responsible for its day-to-day operations.
Hoffman said the change was not motivated by any dissatisfaction from the board or from the firm’s largest shareholder, Saul P. Steinberg. The New York financier, whose Reliance Financial Services owns about 17.8% of Tiger’s common stock and has two seats on Tiger’s 11-member board, had previously called management “ineffectual.”
“If there is any dissatisfaction, it starts with me,” Hoffman said, adding that the board’s decision to name Jensen was unanimous.
Steinberg and Jensen could not be reached for comment.
Tiger lost $375.7 million between 1981 and 1983 as the recession cut into shipping volumes. The company pared its operations and reported profits from continuing operations of $44.2 million last year.
However, write-offs late in the year from an ill-fated rail-car leasing venture resulted in a net loss of $88.9 million. Tiger lost $14.9 million in the first six months of this year due to renewed losses at Flying Tiger.
Hoffman said Jensen’s appointment would not result in any strategic changes at the firm, which “is seeking to expand its position in air freight and trucking.”
Although Jensen has no previous transportation management experience, Hoffman described him as “one of the most highly regarded CEOs in business” and said his expertise with mergers and acquisitions could help if Tiger goes on the takeover trail.
Jensen, who served as chairman, president and chief executive of GK Technologies between 1973 and 1983, was recruited onto Tiger’s board last May.
