Mattel has announced a leadership change with Roger Lynch set to become the company’s new chairman and CEO. Lynch, who will bring his experience from serving as CEO of Condé Nast since 2019, is joining Mattel amid a key transition period for the toymaker.
Transition in Leadership
The announcement was made on Wednesday, detailing that Lynch, currently a board member and independent lead director at Mattel, will assume the role of chairman on Friday. He is expected to take on the chief executive officer position by 2 November. Ynon Kreiz will relinquish his duties as CEO and chairman by Friday, as he prepares to step into a senior leadership role at another public company.
Lynch’s Background and Compensation
Lynch has been affiliated with Mattel’s board since 2018. Before his tenure at Condé Nast, he held significant positions as the CEO of Pandora and as the founding CEO of Sling TV. Mattel highlighted Lynch’s prowess in harmonising global operations and capitalising on intellectual property across brands during the announcement.
For his new role, Lynch will receive an annual salary of $2.3 million. He will also be eligible for an incentive plan award equating to 200% of his base salary, which can extend up to 400%. Additional compensation includes a $10.6 million cash signing bonus, a $6 million restricted stock unit award, and a $985,000 relocation allowance as per filings with the U.S. Securities and Exchange Commission.
Interim Arrangements
In the interim period before Lynch fully takes charge, Jonathan Anschell, Mattel’s current chief legal officer and secretary, will step in as the interim principal executive officer while maintaining his current responsibilities. Concurrently, Diana Ferguson, also a board member, has been appointed as the new independent lead director.
Company Objectives and Financial Performance
Recently, Mattel has shifted its focus from solely producing toys to expanding its intellectual property and foraying into virtual realms. Under Kreiz’s direction, Mattel launched Mattel Game Studios this summer in pursuit of these objectives.
Financially, Mattel reported a 10% rise in net sales year-over-year, reaching $1.1 billion in its latest quarterly results. Despite this rise, the company recorded a second-quarter net loss of $18 million, contrasting with a net income of $53 million during the same period the previous year. Mattel maintains its full-year guidance, forecasting an increase in net sales of between 3% and 6%.
Reporting based on coverage first published by retaildive.com.