A broad realignment within General Motors’ sales and marketing organizations has big implications for the company’s all-important advertising and marketing engine.
CJ Fraleigh, 40, the up-and-coming executive director of corporate advertising and marketing who oversees one of the world’s largest advertising budgets, is taking an operational position within GM. He was named general manager of the Buick and Pontiac-GMC divisions, effective Feb. 1.
He takes over for Roger Adams, 47, who changes places with Fraleigh. Adams also will oversee customer relationship management, including its huge direct-marketing customer database.
Both continue to report to John Middlebrook, GM vice president of marketing and advertising.
The move surprised some executives who thought that Fraleigh, who spent nearly three years in the post, might continue up the marketing ranks. But others see it as another sign that marketing is not the popular route to the CEO suite that it used to be.
“Clearly, directors are putting a bigger emphasis on operational experience,” said one source close to the GM situation. “CJ believed that he needed operational experience.”
Fraleigh, a former Pepsi-Cola marketing executive, is considered a rising star. As overseer of GM’s $3 billion advertising budget, he got high marks for contemporizing Cadillac’s marketing and rolling out splashy corporatewide marketing programs, such as GM’s 24-hour test drive and the most recent “Hot Button” promotion. But on other brands, including Pontiac, he’s had mixed results.
Adams, who joined Buick in 1996, also has Pepsi in his background. He worked with the company in the early and mid 1980s.
Hollinger loses another: Peter Atkinson, an executive vice president of Hollinger International Inc., is the latest executive to cut ties with former Chief Executive Conrad Black in the wake of a payments scandal there.
Atkinson, who previously left the board of Hollinger International, which owns the Chicago Sun-Times, stepped down from the board of parent Hollinger Inc. on Tuesday. He also stepped down as an executive of Ravelston, a private company owned by Black that has received hundreds of millions of dollars in controversial management fees from Hollinger International.
Toronto-based Hollinger Inc. is controlled by Black, but a special committee of the board is attempting to curtail Black’s control of Hollinger International while it finishes its investigation into millions of dollars of unauthorized payments to Black and three other executives, including Atkinson.
As a result, the board has given an ultimatum to Hollinger International executives who also served on Hollinger Inc.’s board to choose a side. Daniel Colson, another executive vice president of Hollinger International with close ties to Black, stepped down from the Hollinger Inc. board late last month.
Among the things being considered as Hollinger International’s board continues to try to limit Black’s control as the largest shareholder is stripping Black of his chairman title.
Also on Tuesday, Hollinger Inc. named Peter White co-chief operating officer. White, a longtime associate of Black and an executive in two of Black’s private companies, shares the post with David Radler, the former publisher of the Sun-Times, who also is linked to the scandal. Radler has resigned as chief operating officer for Hollinger International.
Arnold names new St. Louis chief: Arnold Worldwide named Steve Swanson managing partner and chief marketing officer of the advertising agency’s St. Louis office.
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Swanson joins the agency from Denver-based McClain Finlon Advertising, where he was executive vice president/client service director.
He reports to Arnold Worldwide President Fran Kelly.
The agency, one of the few in St. Louis showing any strength, has grown in recent months thanks to its main account, Louisville-based liquor giant Brown-Forman.
On the move: BBDO New York confirmed Tuesday that Bill Katz, 49, president and CEO, is stepping down after 23 years with the agency. … Wheatley & Timmons named Wendy Gifford vice president, new business and strategic planning. Gifford had been principal and owner of her own marketing consultancy.
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Jim Kirk’s Media and Marketing column appears Tuesday, Wednesday, Thursday and Friday. E-mail [email protected].