SCHAUMBURG, IL -- In a surprise move today Sparton announced president and chief executive Cary B. Wood has resigned, effective immediately.
Senior vice president, corporate development Michael Osborne also left the company, effective immediately. No reason was given for the departures.
The Sparton board appointed chairman Joseph J. Hartnett interim president and chief executive, pending the outcome of a search for a permanent replacement for Wood. Hartnett stepped down as chairman and from the Board’s audit committee as a result but will remain on the board.
Sparton director James R. Swartwout has been appointed chairman.
Osborne’s duties have been reassigned to other members of Sparton’s senior management team.
The board said it has retained a nationally recognized executive search firm to assist in recruiting a new top executive.
Wood is credited for leading a turnaround at Sparton. When he joined the company, Sparton's profits had been steadily melting away.
Wood reinvigorated the company's revenue streams, making several strategic acquisitions. The firm's revenue climbed to north of $400,000 in 2015, and the net profits have stayed in the black as well. On his watch, The company also relocated its headquarters to the Chicago area, following Wood's thinking that when management was located adjacent to factories, it could hamper clear-headed decision-making.
In a statement announcing the changes, Hartnett said, “The board recognizes the value that Cary has brought to Sparton during his tenure as CEO and thanks him for his many contributions. Sparton’s talented leadership team will enable it to steer a steady course in its operations and financial performance pending the naming of a new president and CEO.”
Hartnett has served been a director since 2008 and chairman since 2014. He was president and CEO of Ingenient Technologies, a multimedia software development company, located outside Chicago from April 2008 through November 2010. He was president and CEO of US Robotics from May 2001 through October 2006. He was Chief Financial Officer of U.S. Robotics from June 2000 to May 2001.