South Korean majority owner Youngone Corporation announced March 29 the sacking of long-term CEO Beat Zaugg at Scott Sports. The latter refused to accept this decision, and now a well-reputed headhunting agency has been hired to find a new CEO.
The press release that Youngone Corporation as the majority owner of Scott Sports sent out on the afternoon of Good Friday sent shockwaves through the sports and bicycle industry, both in Switzerland and globally. According to this press release a majority of the board had decided to sack long-term CEO Beat Zaugg and replace him with Kim Ju-won, a finance expert and member of the board at Youngone Corporation. Beat Zaugg reacted on Easter Monday with a press release of his own, claiming that his release was in breach with relevant statutes and that he was still the CEO of Scott Sports.
Back in January Youngone Corporation had announced a cash injection of US$150 million into Scott Sports to ensure liquidity despite ongoing overstock issues and declining sales. This massive loan came at an interest rate of 4.5 percent. And it further increased the stakes and the leverage that the Korean majority owner had on Scott Sports. Youngone Corporation seems to have lost patience by early April and decided to bring in a finance expert from its own ranks. The week after Easter, things really got ugly at the company’s headquarters in Givisiez, Switzerland, as local police had to be called in to stop an escalating war of words between senior members of the management.
While there has been no official communication since, both sides seem to have agreed that neither Beat Zaugg could stay on as CEO of Scott Sports, nor could Youngone Corporation install their pick for the job. By mid-April well-reputed headhunting agency Spencer Stuart was mandated with the search for a new CEO at Scott Sports. The job advertisement can be found on the Swiss portal jobagent. As you would expect with such a demanding task the criteria for candidates are pretty strict. Apart from a Master’s degree, the requirements include advanced language skills in English, German and French and at least three years of experience in a leading role within the bicycle industry. And no — neither home office nor part-time employment are options.