Why Rondolat Chose to Leave

Why Rondolat Chose to Leave

Why Rondolat Chose to Leave: A Planned Transition

When a CEO leaves a company, a key question is whether they chose to go or were forced out. Signify’s official statement confirms that CEO Eric Rondolat and the Supervisory Board “have agreed that the time is right for a change of leadership.”

Rondolat’s Explanation

On an investor call, Rondolat explained his decision to leave. He emphasized a close relationship with the Board and described their joint decision. “I’m extremely close to the Board and this is the decision that we have taken with the Board. And I will tell you there are two elements in the decision. One is time and the other one is timing,” he stated.

Rondolat highlighted the need for a long-term leader to capitalize on Signify’s success. He noted that after 13 years in the role, including nine as a publicly traded company, a new leader with a longer-term commitment is essential. “If you look at where we are today, we’ve built a very strong company that transforms within the industry, still being the leader in conventional, connected and LED…. it needs the leadership that is going to stay for many, many years in order to reveal that potential,” he explained.

In a call with your humble editor, Tom Lodge from Signify Corporate Communications echoed this sentiment. “The era we are entering, from technology and business, we need someone with 5 to 10 years to invest into the business and that is why he and the Board think that now is a good time,” Lodge said.

Prioritizing Restructuring

Rondolat emphasized the importance of completing a major restructuring program before his departure. He explained, “It was very important for me and the board to stay in 2024 to implement the major restructuring program to help reposition the right people in the right job.”

Strategic Timing

Lodge further explained the timing of the departure. “At the time of the contract renewal last year, we were in the middle of a complicated reorganization of the business and not a good time to make a change,” he said. He added, “Now that the reorganization is completed and the savings realized, and the company is on solid footing, if you are going to make the change, now is the good time.”

This departure appears to be a well-planned transition, allowing for a smooth handover and enabling Signify to build on its recent successes.

Go Deeper:

Read the announcement here

Learn about the recent earnings announcement here