Unisys launches search for new CEO
Joseph W. McGrath, president and chief executive officer of Unisys Corp., the computer-services firm trying to revive its fortunes and profile in part by moving its home from Blue Bell into a Philadelphia skyscraper, has agreed to step down by year's end.
Joseph W. McGrath, president and chief executive officer of Unisys Corp., the computer-services firm trying to revive its fortunes and profile in part by moving its home from Blue Bell into a Philadelphia skyscraper, has agreed to step down by year's end.
"The board of directors and Mr. McGrath agreed that a change in leadership would best enable Unisys to move forward on accelerating execution of the company's strategy," Unisys said yesterday.
No successor was announced. McGrath and the board agreed he would remain in charge of daily operations until a new CEO is selected.
McGrath joined Unisys from Xerox Corp. in 1999 and took the top job in 2005. McGrath, who worked to focus Unisys on high-profit businesses and cost-cutting, had hoped to turn a profit this year after steady losses.
He had faced pressure from activist shareholders, including MMI Investments L.P., which urged splitting government and private-sector work into separate companies. Unisys gave MMI's president, Clay Lifflander, a board seat in May. It also retained the Goldman Sachs Group Inc. to recommend its strategic choices by year's end.
Shares closed down slightly at $3.13 yesterday on the New York Stock Exchange, just above the 52-week low of $2.85 but far below the $7.90 high.
The most recent deal announced by the company was a three-year, $22 million contract to develop and produce a new citizen ID card for the Ministry of Justice of the Republic of Angola, on the west coast of southern Africa.
Unisys spokesman Jim Kerr said McGrath's imminent departure had no connection to the company's desire to relocate a portion of its corporate headquarters and about 225 employees to the Center City office/condo tower Two Liberty Place, in hopes of raising the company profile.
But Unisys failed to overcome tenant opposition or persuade city zoning officials to let it hang a large "Unisys" sign on the building's 38th floor. That led the company to say it was reevaluating its move, originally planned by the end of 2009.
"We're still reviewing our options" regarding the move, Kerr said. "There are many people involved in that decision, not just Mr. McGrath."
Unisys, which traces its roots to several makers of office machines, including pioneer computer-builder Univac, employs 30,000 worldwide.