Campbell Taps Gerber Executive for CEO Post

David W. Johnson, chief executive at Gerber Products Co., has been named chief executive of Campbell Soup Co., as the food products company moves to squash speculation it will be sold.

Johnson is the first outsider selected to head the company in its 120-year history. He replaces R. Gordon McGovern, who announced his early retirement in November after serving as president and chief executive since 1980.

Analysts hailed Johnson’s selection and predicted that he would bring stability to Campbell amid growing dissent among members of Campbell’s founding family, who control about 59% of the company’s 129.6 million outstanding common shares.

“Fundamentally, it looks like the news may have shifted toward the company being independent with such a strong executive being named,” said Marvin B. Roffman, of Janney Montgomery Scott Inc. in Philadelphia. “David Johnson has a very fine reputation on Wall Street as an outstanding marketer and an outstanding executive.”

Johnson, 57, was chosen because of his experience at beleaguered companies, Campbell Chairman Robert J. Vlasic said. He said Johnson’s successful turnaround of Gerber “has made him one of the food industry’s most highly respected executives.”

“His first priority is to analyze the situation and come up with recommendations to the board on plans for the future,” Vlasic said in a brief telephone interview. “We hope that in turn will produce results that will change the minds of anybody who presently wants to sell their shares.”

Last month, three descendants of John T. Dorrance Sr., who invented condensed soup in 1897, announced their intention to sell their 17% interest and push for a sale of the food products company.

A source close to the group who requested anonymity said the family members endorsed Johnson’s selection. But the source said it doesn’t alter the group’s intentions.

Johnson accepted a five-year contract and begins the new post on Jan. 15. Alfred A. Piergallini was elected chairman, president and chief executive of Gerber to succeed Johnson.