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The eBearing News
November 10, 2003
Bowling and Timken Retiring,
WJ Timken to Lead Steel
copyright © 2003 eBearing Inc.
The Timken Company (USA) announced senior management changes.
W.R. "Tim" Timken Jr. formally announced his retirement from active management at Timken, effective
December 31, 2003. Mr. Timken has long said he will retire at the end of the year, after he turned 65.
However, Mr. Timken will remain Chairman of the Board, a post he has held since 1975.
Mr. Timken, company founder Henry Timken's great-grandson, joined the company in 1962.
During his tenure, he was CEO from 1979-1982. He again took over as President and CEO in 1998,
following December 31, 1997 retirement of then-President and CEO, Joseph Toot.
In 1999, Jim Griffith was named President and COO while Mr. Timken remained CEO and Chairman. In 2002,
Mr. Griffith was named President and CEO while Mr. Timken took over a new, unspecified, "super CEO" executive
management position. In fact, in the 2002 announcement during a U.S. plant tour, Mr. Timken pointed out that
although Mr. Griffith was now CEO, Mr. Griffith would will still report to him.
Many saw Mr. Timken's absence from the third quarter conference call as a move in deference of Mr.
Griffith, to solidify his position in the minds of investors as Timken's top executive going forward.
After January 1, 2004, Mr. Griffith will effectively hold the top executive management spot alone.
Mr. Timken said, "I have long planned to finish active management at the end of this year when I turn
65 years old, which is the maximum retirement age for Timken executives. An excellent management team
is in place under the leadership of Jim Griffith. They have been tested, and I have great confidence
that they will move the company forward to outstanding success."
eBearing spoke to industry observers, all of whom supported the move.
One noted that it has been confusing for investors that Mr. Griffith could be named CEO but yet report
to Mr. Timken holding what he termed, "an unspecified, nontraditional superexecutive" position. Investors,
he pointed out, "want and have a right to expect a well-defined management team. Mr. Timken's
presence there, hurt Griffith's credibility," even though he holds the title
of CEO which, "investors have a right to expect represents the title of the company's most senior
executive and its operating head." Another told eBearing, Mr. Timken removing himself from above
Mr. Griffith, "sends the right message supporting the management team."
Bill Bowling, COO and President of Steel, will retire from the company on December 31, 2003.
Mr. Bowling, 62, joined the company in 1965, and has been involved with the
steel business during virtually all of his tenure with Timken. His most obvious contribution to the
company was directing the design, construction and startup of Timken's state-of-the-art Faircrest steel plant.
Until the Torrington acquisition, the $500 million Faircrest project was by far Timken's largest and most
expansive manufacturing project. Mr. Bowling was named President of Steel in April 1996.
Interestingly, in his 1984 speech at Faircrest, President Ronald Reagan took the opportunity to lambaste calls
for protectionism in the steel business. He said, "But a blunderbuss approach of
quotas and trade barriers, encouraging stagnation by stifling competition, is not the way to a better
future. It's a giant step back into the misery of a failed past." Instead, he pointed to Timken Faircrest
as a model of the way U.S. businesses must innovate and respond to foreign competition.
Although Mr. Bowling's retirement was never formally or publicly announced, it was mentioned in passing
by Mr. Griffith during the recent third quarter earnings call.
Referring to Mr. Bowling in the recent announcement of Ward Timken Jr. taking over Steel, Mr. Griffith
said, "The company has benefited from Bill's strong leadership. His contributions range from project manager for
the development of our world-class Faircrest Steel Plant in the early 80s, to more recently serving
as chief operating officer and maintaining a strong steel business during difficult economic times.
We wish him well as he retires."
In related business, Ward J. (W.J. or "Tim") Timken Jr., 36, was named a corporate Executive Vice President,
and more importantly, President of the Steel Group, replacing Bill Bowling. Ward Timken will report
to Mr. Griffith.
Ward Timken began his career with the company in 1992 as an executive assistant in the Steel
business, then rotated through several high-level assignments in the bearing business, variously
responsible for projects in Europe, Africa, West Asia, Eastern Europe and Latin America. In 2000, he was
named corporate Vice President - Office of the Chairman, involving corporate strategy projects.
He holds a degree in Marketing from Georgetown University and an MBA from the University of Virginia.
Ward Timken currently sits on the boards of the Timken foundations, the Firestone Country Club, and
the Canton Country Day School.
eBearing has had a barrage of comments, both from the steel industry and from analysts
following the company, regarding Ward Timken's appointment as President of Steel.
Beyond questions about Ward Timken's experience, the larger issue we heard raised was as
one analyst put it, "In today's investment climate, it's highly inappropriate for any publicly traded
company to still be promoting family members."
Another disagreed with the need for years of steel industry experience, saying, "It's not rocket science
running a steel business; these days, it's the making money part that's real tough."
Commenting on Ward ("Tim") Timken's appointment. Mr. Griffith said, "Tim brings strong
strategic thinking and a track record of driving positive change, which will build on Bill's efforts as we continue
to drive greater profitable growth in the Steel Group. Tim has had great success through a progression
of global management positions in both our bearing and steel businesses as part of the company's leadership
succession planning."
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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