In an article posted today in Businessweek, the popular Trump Entertainment Resorts is replacing its current CEO, Mark Juliani, with Robert Griffin, who is the president and CEO of MTR Gaming Group Inc. He is also the president of the Casino Association of New Jersey. Robert Griffin has already been praised by Trump's board chairman, even though Mr. Griffin will not begin working as CEO until late October or early November.
Mr. Griffin's company MTR has casinos in West Virginia, Pennsylvania, and Ohio. He has many well-regarded casinos in Columbus, Ohio. Furthermore, he was also involved in Trump Entertainment years back. He was a senior manager at Trump Marina from 1992-1998.
Mr. Trump, who currently owns 10% of Trump Entertainment, said "Mark (the current CEO) was a wonderful guy, and we think the new CEO will do a fine job as well. They (the board) just felt it was time to do something new." The article also states that Mr. Juliano's exit marks a near-complete change of top management in the company.
I believe that every certain number of years, a company should change its CEO. Even though that may be difficult, I believe having a new boss with new ideas will benefit the company more in the long run than not. Also, I find it incredible that Mr. Griffin has 30 years experience in the Hospitality industry. He is only 51. He has seen the industry during its best and worst times and has seen how far the industry has come over 3 decades. I believe his experience will help Trump Entertainment Resorts in the future. I think it's important that Mr. Griffin was a part of Trump at one point. Even though he was involved in it years back, he has at least a basic background about how things are operated within the Company.
http://www.businessweek.com/ap/financialnews/D9IH4TUG0.htm
I also see replacing the CEO as a good move. It does not necessarily mean that the present one was not doing a good job, just that sometimes you need to mix things up. Everyone has a certain way of thinking and someone with more experience elsewhere (casinos) may be able to come up with the next best idea. However, it is important that he has experience in the hotel industry which he does. Had he not, I would say Trump Entertainment would be better off with someone who knows the ins and outs of the hotel industry.
ReplyDeleteNice post, Lauren. It is an interesting viewpoint to suggest changing CEOs every so often. However, do you think this could encourage the managers to work towards short term profit/gains rather than the longterm success of the company? This idea could create an even bigger divide between the interests of shareholders and management. Either way, good job!
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