‘I won’t surrender’: Scott CEO continues to work despite being terminated without notice

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Dispute over Swiss sporting goods maker Scott: The cycling and ski brand is leaving its previous CEO and long-time boss Beat Zaugg, 66, with immediate effect. It condemned the decision, but according to the board, the termination is legally binding.

“I’m still in the office and working,” longtime boss and board member Beat Zaugg told news agency AWP on Tuesday. He’s still “on the front lines” and “just won’t give up.”

General manager can be dismissed

A day earlier, Scott announced that South Korean majority shareholder Juwon Kim of Youngone would take over the leadership position, effective immediately. The purpose of this decision is to further the international development of the brand.

“Of course you can vote me in as CEO, the board can decide that,” Zaugg said. However, he did not attend any board meetings regarding this issue. Among other things, he criticizes the failure to inform employees in advance about the CEO change.

It is not unthinkable for the 66-year-old, who currently owns a 47 percent stake in Scott, to one day exit his investment. However, a potential buyer needs to “understand the company’s industry and culture.” Zaugg says that’s not the case with Youngone.

In office since 1993

Zaugg had been head of the company since 1993. The Bern native was Scott’s sole shareholder from 2005 to 2013 and transferred 50.01 percent of the shares to the Youngone group in March 2015. Thus, he becomes a minority shareholder and therefore no longer has the authority to make decisions alone.

New CEO Juwon Kim, appointed by the board of directors, told AWP that the board of directors of operating company Scott Sports decided to dismiss Zaugg without notice last Wednesday, March 27. He learned that he was dismissed the same day. The reasons for this are not disclosed at this time.

According to Kim, a majority of the board of directors of Scott Corporation, the holding company that includes both Zaugg and Kim, approved the decision in Zaugg’s presence. Since then, management has been working on a smooth transition.

The Board of Directors will have the final say

“We understand that it may be difficult for Mr. Zaugg to accept his resignation, given his long-standing role as CEO,” new CEO Kim said. But this is ultimately irrelevant: “The ultimate decision-making body of a company is the board of directors and clearly has the right to remove the CEO.”

Kim has been a member of the Board of Directors of Scott Corporation since 2022. He has many years of experience in investment banking, including at Credit Suisse. Kim also co-founded a start-up company in South Korea before taking over as head of growth strategy and mergers and acquisitions at Youngone, Scott’s majority shareholder. It is said that as CEO, Kim will be advised by two industry experts from the cycling and outdoor industry, Steve Meineke and Mathias Seidler.

Scott was founded in the USA in 1958. The company currently employs approximately 1,000 people, 400 of whom are in Switzerland. It is headquartered in Givisiez FR. (SDA/wgr)

Source :Blick