Vancouver, Wa — Even though Sherborne Investors now controls Nautilus' board of directors, Robert Falcone remains president and CEO of the Vancouver, WA-based company. At one time, Sherborne Investors had indicated they would look for a new CEO if they controlled the board.
At the Dec. 18 shareholder meeting, shareholders voted to replace four of the seven Nautilus board members with Sherborne nominees. Once the vote was confirmed by a third party, the new board met on Dec. 31 and elected Edward J. Bramson, managing director of Sherborne, as chairman of the board. Also new to the board are Gerard L. Eastman, managing director of Sherborne Investors; Michael Stein, formerly CFO of ICOS Corp., Nordstrom and Marriott International; and Richard Horn, formerly general manager of the Pets Hotel Division of PetSmart.
Remaining on the board are former chairman Falcone, Ronald Badie and Marvin Siegert.
Sherborne Investors, which owns 23.5 percent of Nautilus' stock, began to seek removal of board members this fall after Nautilus' stock continued a two-year decline. In the third quarter, the company announced a loss of $13.45 million.
Falcone became CEO in August and has made several changes that he says will turn around the company. The former Nike executive laid off 9 percent of Nautilus' workforce, cut expenses by $10 million annually and put the company's clothing line, Pearl Izumi, up for sale.