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Home Callaway Golf selects its next CEO

 

As first pointed out in the January 27th issue, Chip Brewer will indeed be the next CEO at Callaway Golf (NYSE: NYSE). The Company announced late yesterday that Brewer is coming on board after he resigned as Chief Executive Officer and a member of the Board of the Directors, of Adams Golf (Nasdaq:ADGF), effective upon the close of business on today. Barney Adams, Chairman of the Board of Directors and founder of Adams Golf, will serve as interim CEO while the Board continues to explore and evaluate strategic alternatives to enhance shareholder value.

"After a very thorough search, we believe that we have selected the ideal candidate to lead us through the next chapter at Callaway," stated Ron Beard, Chairman of the Board of Directors. "Chip has extensive knowledge of all facets of the golf business, particularly in the sales and marketing area, and has a real passion for the game of golf. Chip also has great relationships with customers and others in the golf industry and he has done a great job turning around and leading Adams Golf. We believe he is the right leader to entrust with our valuable brands and the Board looks forward to working with him to restore profitability and increase shareholder value." 

"This is an amiable transition and we wish Chip well and thank him for his service to the Company over the last 13 years," stated Barney Adams in a prepared statement. "Our Company continues to perform at a high level and I look forward to working with the operating team to carry on the excellent results they have been delivering."

"After having had the opportunity to serve as CEO during this transition period, I am certain we have selected the right candidate," added Tony Thornley, who carried the interim CEO tag after George Fellows stepped down last year. "Chip has the right mix of leadership skills and experience to complement the Company's two main strengths, namely its people and its leading golf club and golf ball technology. I believe that he has the insight and ability to build upon these strengths and have an immediate impact upon the Company and its recovery." 

Brewer has been with Adams Golf since 1998 and has served as its President and Chief Executive Officer since 2002. He takes over the helm at Callaway starting on March 5th. "Having been around golf my entire life, I know Callaway and its products very well and I am very excited about joining such an iconic company and being part of its great heritage," said Brewer in a prepared statement.  "There is a lot of opportunity ahead for Callaway and I look forward to working with the Board and senior management team to build upon the strength of its brands to restore profitability and increase shareholder value."

Callaway gains someone that has had to compete against for more than the past decade in both good and tough times. His work at Adams Golf was largely admired within the industry, even if Wall Street essentially ignored it. With his move to Carlsbad, he will have more assets to work with than he did while at Adams, but will also endure greater scrutiny. Callaway gains someone that doesn’t require a steep learning curve, such as George Fellows or Tony Thornley required for the purpose of the industry or its trends. For more details and analysis be sure to read the next issue of the Web Street Golf report.