Hawley Wants to Plot Course Before Retiring

Philip M. Hawley says he hopes to relinquish the helm of Carter Hawley Hale Stores in four years. But first, he says, he wants to be sure the company is on course.

Hawley, lean and athletic at 65, was named chief executive in 1977 and chairman in 1983. He says his retirement plans are in line with a promise he made when the company reorganized in 1987.

The board asked him to stay seven more years to see the overhaul through, Hawley says, and he agreed. “I, as a personal objective, intend to have this company well-positioned by the time that seven years is up,” said Hawley, who was paid $707,500 last year. “I don’t want to be here forever,” he added.

During Hawley’s tenure, the company’s performance has lagged the industry’s. Value Line Investment Survey figures indicate that its profit has been below the industry average every year since 1975.

Critics have suggested that Hawley, who is active in Los Angeles social and business circles and is a director of an array of organizations, has paid too little attention to what was going on in his company’s back yard.

“The board and top management have to face reality. Things haven’t worked out,” said Robert F. McCullough, chairman of a San Francisco money management firm that holds 8% of Carter Hawley’s stock.

Hawley supporters say he has been a victim of difficult circumstances and has had too little time to turn the company around. They also say he did not have full authority to run the company until he became chairman in 1983.

In 1984 and 1986, Hawley fended off hostile takeover bids. Then the company launched its reorganization. Programs to switch sales clerks to a commission-based pay system and to renovate stores quickly followed. “That’s a lot to take on all at once,” said Bill Dombrowski, Carter Hawley’s vice president for corporate affairs.