Shake up in Reader’s Digest executive suite: CEO Mary Berner out; CFO Tom Williams takes over

RD
Former headquarters of the Reader’s Digest Association, now Chappaqua Crossing
Tuesday, April 26, 2011
by Susie Pender

RDA Holding Company, the corporate parent of Reader’s Digest Association, announced yesterday that Tom Williams, previously the chief financial officer of the company, would replace Mary Berner, president and CEO for the last four years. He will assume the titles of president and chief executive officer of Reader’s Digest Association and will also join the board of directors.

Last week, the company announced that shareholders had approved a new board of directors. At the time they stated that Mary Berner would retain her seat on the board. However, the new board announced yesterday that she would be leaving the company.

“With the board transition last week, this was a natural point to move on,” said Ms. Berner in a statement. “I am extremely grateful to all of the employees at RDA for their hard work during my tenure at the company. I am also very proud of the management team and that together we put the company on a path to profitable growth. I’ve worked very closely with Tom for the past two years, and I leave the company know that it is in truly capable hands.”

Ms. Berner arrived at the Reader’s Digest Association in 2007 after private equity investors led by Ripplewood Holdings purchased it using debt financing. During her four-year tenure, Ms. Berner led the company through a pre-arranged bankruptcy and extensive executive and staff layoffs.

Berner’s cushioned landing

When RDA filed for Chapter 11 bankruptcy in 2009, the company agreed to change both Berner’s and William’s salaries and severance agreements. If Berner wasn’t offered her job back when RDA emerged from bankruptcy, the company agreed to a $2.2 million severance plus any earned but unpaid salary, vacation pay and/or unreimbursed business expenses. When she became CEO of the company in 2007, she was given a $1 million severance package.


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