WMX Chairman and founder Dean L. Buntrock won't participate inthe management of the trash-hauling giant once a new chief executiveofficer is found, WMX said Friday - news that pleased some investorsbut puzzled some analysts.
"He has no plans to participate in the management of the companyonce a new CEO is selected," said WMX spokesman William Plunkett."Right now his No. 1 priority is finding the best candidate."
Buntrock has been acting CEO since February, when Phillip Rooneyresigned after criticism of the company's management and turnaroundplan.Buntrock "has made the right decision," said Nell Minow,principal of Lens Inc., a leader among investor groups that have saidit's time for Buntrock to go.She said Buntrock's decision will likely head off plans amongsome investors for a symbolic protest vote during the company's May 9annual meeting to withhold support for Buntrock's re-election as adirector.She and other investors contend that Buntrock's continuedinvolvement in management would be an impediment to attracting thebest CEO.Argus Research Corp. analyst James Kelleher was surprised byWMX' disclosure and suggested it might indicate problems inattracting a new CEO."It's very unusual for something like this to play out sopublicly," said Kelleher. "You would think (Buntrock) would makesure the door is shut and say (to a wanted candidate), `I'll stepaside if you come aboard.' This makes it look like they're going hatin hand looking for a CEO. But it goes hand in hand with all theother Peyton Place drama that's occurred."WMX declined to provide specifics on how the search for a newCEO is progressing or whether a short list of candidates has been puttogether.But Minow said the search appeared to be progressing well.
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