Oakley Founder Jim Jannard Replaces CEO

Oakley Inc., shaking up its corporate suite again, said Thursday that Chairman Jim Jannard will become chief executive officer, the first time he has held the position since he founded the sunglasses company in 1975.

Former Gatorade executive William Schmidt, who took the reins six months ago and quickly began expanding the Foothill Ranch-based company’s marketing efforts, has resigned.

Jannard, 50, will be Oakley’s fourth chief executive since the company went public four years ago.

“It’s a reflection of [Jannard] wanting to strongly reconnect with the whole Oakley team as leader,” company spokeswoman Renee Law said. “He’s had very clear strategic input [as chairman], but he’s very keen to get back in, hands on, leading the company.”

Jannard will continue to live in the San Juan Islands in Washington, but Law said he will spend more time in Orange County, where he has a vacation home.

Neither Jannard nor Schmidt was available for comment. The company declined to elaborate on the reasons for Schmidt’s resignation.

“It was a mutual decision, but I don’t think it’s necessary, relevant or constructive to go into detail,” Law said. “The match between Bill and [the company] just didn’t bring about the synergy we had hoped.”

A friend of Schmidt’s said he and Jannard had clashing management styles. Moreover, Jannard, who owns almost 60% of the company’s stock, was attempting to run the business from Washington, another sore point, the friend said.

Last year, Oakley moved to build on its strong reputation as a sunglasses maker by introducing an athletic shoe and wristwatch line. It has since expanded both.

With then-Chief Executive Linc Newcomb considered more skilled at operations than at building a brand, the company hired Schmidt on May 1 to lift Oakley to “the next level,” with a goal of building global sales to $1 billion. Last year, Oakley’s sales were $232 million.

At Oakley’s annual shareholders meeting in June, Oakley executives discussed a broad push under Schmidt’s management to increase Oakley’s visibility and expand all product lines.

The next month, the company opened its first retail outlet, the O Store at the Irvine Spectrum.

The company will continue the marketing initiatives that Schmidt set in motion, Law said. Oakley, which had previously taken a low-key approach to marketing its products, announced in August it had hired VitroRobertson as its first outside ad agency.

Schmidt’s resignation isn’t likely to have much impact on Oakley’s operations because his tenure was so brief, said Marcia L. Aaron, an analyst with Deutsche Banc Alex. Brown.

On Thursday, the company’s stock closed unchanged at $6 a share, slightly above its 52-week low, in New York Stock Exchange trading.

Despite the new initiatives, analyst Aaron said, there is little indication the new shoe styles have given the company a boost, analyst Aaron said.

“My sense is their business is OK,” she said. “I think the footwear continues to be lackluster.”

Newcomb, Schmidt’s predecessor, became CEO in September 1997. He replaced Mike Parnell, who had been CEO for 11 years. Parnell remains vice chairman.

Parnell and Newcomb remain directors, but Schmidt has relinquished his board seat.

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Oakley Stock Trend

Oakley’s stock, which traded in the $10-$12 range in early 1998, closed Thursday at $6 per share.

Thursday’s close: $6.00

Revolving door

Oakley Inc. has had four chief executives since the sunglass maker went public four years ago. The changes at a glance:

1997

September: Longtime Chief Executive Mike Parnell is replaced by Link Newcomb, the company’s chief operating officer. Parnell remains vice chairman, focusing exclusively on sales and marketing.

1999

April 21: William D. Schmidt, a former Gatorade executive with extensive advertising and marketing experience, replaces Newcomb, who remains on the board and becomes chief operating officer.

October 7: Jim Jannard, founder and chairman, becomes CEO. Schmidt resigns after less than six months on the job.

Source: Times reports; Researched by JANICE JONES DODDS / Los Angeles Times