Mary Berner Out at Reader's Digest
CFO Tom Williams takes over as president, CEO.
RDA Holding Co. announced its board of directors has named Tom Williams as president and CEO of Reader's Digest Association, replacing Mary Berner [pictured], who leaves the company.
Williams served as CFO of RDA. Before joining the company, he served as CFO of marketing services company Affinion Group Inc.
Last week RDA named a new board of directors, initially saying that Berner would retain her seat on the board. Randall Curran, CEO of telecommunications company DELTACOM, Inc., now takes over as chairman of the RDA board.
"With the board transition last week, this was a natural point to move on," said Berner in a statement. "I am extremely grateful to all of the employees at RDA for their hard work during my tenure at the company. I am also very proud of the management team and that together we put the company on a path to profitable growth. "
RDA Holdings Co. previously announced that revenue in the fourth quarter of 2010 dropped 15.9 percent to $521.8 million compared to the fourth quarter of 2009. Meanwhile, net income rose to $58.5 million in the fourth quarter, compared to a net loss of $26.7 million for the same period last year.
Looking only at the company's performance since February 2010, when RDA emerged from bankruptcy protection, it generated $1.5 billion in revenue, compared to $2.1 billion in calendar year 2009, with a net loss of $40.5 million, compared to a net loss of $921.4 million in 2009.
Berner's $2.2 Million Severance Package?
When RDA filed for Chapter 11 in 2009, the company agreed to change both Berner's and William's base salaries and severance payouts. If Berner wasn't offered her job back when RDA emerged from bankrupcty, the company agreed to a $2.2 million severance plus any earned but unpaid salary, vacation pay and/or unreimbursed business expenses (compared to the $1 million severance package she agreed to when she became CEO of RDA in 2007).¬†
At the time of the Chapter 11 filing, Williams had agreed to a severance package worth $1.2 million.¬†
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