Triarc announces new Wendy's leadership
By Associated Press July 25, 2008
The Motley Fool
Triarc
Cos. Inc., which owns the Arby's fast-food chain and is buying Wendy's
International Inc., on Friday announced Wendy's new
management team.
Triarc said J. David Karam, 50, will become the new president of the chain and
Stephen D. Farrar, 57, will serve as chief operating officer. Karam is taking over from current President and Chief
Executive Kerrii B. Anderson.
Triarc announced in April that its
CEO, Roland Smith, will become the new CEO of Wendy's.
Karam is currently a minority
shareholder and president of Cedar Enterprises Inc., which owns and operates
135 Wendy's restaurants.
"It became obvious to me very quickly that he was
someone who could provide an awful lot of value as we move forward,"
Roland Smith said in an interview.
Farrar will take over for Dave Near, who will remain a
franchisee. Farrar has been chief of North American operations in the
Triarc also said Ken C. Calwell, 46, will be the new chief marketing officer. He
was most recently the chief marketing officer at Domino's Pizza Inc. He takes
over from Paul Kershisnik, who will remain with the
company in a senior leadership role in marketing.
Atlanta-based Triarc, owned by
billionaire investor Nelson Peltz, said in April it
would buy Wendy's for about $2.34 billion, or $26.78 per share, in an all-stock
deal. The companies expect the sale to close in the second half of the year.
The management changes become effective once the deal
closes.
In a Securities and Exchange Commission filing, Triarc said until he takes over as president, Karam will be paid $25,000 a month to consult on the
integration of Triarc and Wendy's for about eight
days a month.
Once the deal closes and Karam
takes over the post, he will be paid a base salary of $900,000 and will be
eligible to earn a bonus each year.
Smith said the agreement will allow Karam
to "get up to speed" and will alleviate any concerns as to his role
in the company before taking over as president.
In the filing, the company also said it is working with
consultants to create a "shared service center" in
Wendy's shares rose 45 cents to $23.17 Friday while shares
of Triarc rose 3 cents to $5.49.
fool.com