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Home Callaway Golf CEO is shown the door

Callaway Golf Company (NYSE: ELY) today announced the appointment of Anthony S. "Tony" Thornley as Interim President and Chief Executive Officer, filling a vacancy created by George Fellows, who resigned for personal reasons. The economy as well as a variety of poor decisions should be interpreted as “person reasons,” in what can easily be classified as Fellows being shown the door. Regardless of which way you want to slice it, the company and in turn its shareholders are on the receiving end of a favor in the long run with Fellows no longer involved in the day-to-day operations. Since coming in board in August 2005, which started out promising quickly swung to consistent declines in revenues (lifeblood for any business) and a bottom line stained in red ink. There is some irony in the timing of the announcement, as Callaway said it expects second quarter revenues to be approximately $270 million and it will see a net loss of approximately $55 million for the three-month period. Quick check of the calendar shows that quarter doesn’t officially close until the end of business tomorrow!

Callaway Golf, which by its own admission is still yet to complete the final phase of the it's global operations strategy announced last year that saw it relocate portions of its operations to Mexico that lead to lost jobs in southern California, will once again be parting ways with additional employees. As part of yet another and what seem like never ending reorganization, the company expects to reduce headcount at all levels of the organization

Meanwhile, Fellows left a lasting legacy for his successor to overcome. For more on this story as well as a look back at where Fellows went wrong during his watch read the July 5th issue of the Web Street Golf Report.