G&K Services Announces the Retirement of Richard Fink, Chairman of the Board, After 41 Years with G&K Services
August 26 2005 - 7:30AM
Business Wire
Richard L. Marcantonio is named Chairman of the Board and Chief
Executive Officer G&K Services, Inc. (Nasdaq:GKSRA), a market
leader in branded identity apparel programs and facility services,
today announced that Richard Fink, age 75, Chairman of the Board of
Directors, has decided not to stand for re-election to the Board at
the company's upcoming annual shareholders' meeting scheduled for
November 10, 2005, and will retire as its Chairman at the
conclusion of the meeting. Mr. Fink also will retire as a G&K
employee effective on December 31, 2005. A G&K Services
employee for more than 41 years, Mr. Fink has served the company as
President from 1970-1993, Chief Executive Officer from 1993-1997,
and as Chairman from 1981 to the present. Mr. Fink has been a
member of the G&K Services Board of Directors since 1968. "Dick
Fink has been a key factor in G&K's success during his 41 year
tenure at the company and is largely responsible for shaping
G&K into the company that it is today," said Lenny Pippin,
President and Chief Executive Officer of The Schwan Food Company
and chair of the G&K Corporate Governance Committee. "Dick has
led G&K's board of directors and overseen the strategic
long-term vision for G&K during its entire history as a public
company. He has added incredible value to the company, and its
shareholders have been the beneficiaries. He also has served as an
invaluable guide and mentor to members of the G&K executive
team." "Serving and leading G&K during the past 41 years has
been an honor and an experience that I have enjoyed immensely,"
said Richard Fink. "My departure from the company comes at a time
when all the pieces are in place for its continued success, and I
believe G&K has an exciting future with the current executive
team. I'm looking forward to spending more time with my family and
friends, and to watching the company continue to grow from the
outside." The company also announced that Richard L. Marcantonio,
currently President and Chief Executive Officer, is named Chairman
of the Board, replacing Mr. Fink, and the company's Chief Executive
Officer. Mr. Marcantonio, age 55, has served as President and Chief
Executive Officer of the company since January 1, 2004, prior to
which he had been President and Chief Operating Officer of the
company since July 2002. "I am deeply honored to have earned the
continued trust of the Board of Directors, and look forward to a
robust future of growth and success for G&K," stated
Marcantonio. "At the same time, I understand the huge legacy being
left here by Dick Fink as he enters his retirement. As Mr. Pippin
indicates, Dick has been my mentor over the years and all of us
with ties to G&K owe him our gratitude and admiration." "Rick
Marcantonio has demonstrated during his tenure with the company and
in his leadership on the Board a keen business sense and an
attention to detail and business integrity that deserves our
support and respect," stated Pippin. "The members of the Board look
forward to working with him in helping to take the company to ever
greater levels of success." The company's Board of Directors also
created a new position of Presiding Director, in a move consistent
with best practices in public corporate governance, and elected Mr.
Pippin to the post. Chosen from among the Board's independent
directors, the Presiding Director will work with the Chairman to
help assure the Board operates as a true strategic partner of
management in serving the interests of the company's shareholders.
Effective with Mr. Fink's retirement on December 31, 2005 all Class
B common stock of the Company convert to Class A common stock.
Under a Stockholder Agreement that effectively expires with Mr.
Fink's retirement, each share of Class B common stock has had a
voting power equal to 10 shares of Class A common stock. The
Stockholder Agreement affects 1,474,996 shares of Class B common
stock. The conversion of Class B shares to Class A shares
eliminates the super-voting rights under the Stockholder Agreement.
Each Class B share has the same monetary value as a Class A share,
and the conversion will not affect this valuation. Safe Harbor for
Forward-Looking Statements Statements made in this press release
concerning the company's intentions, expectations or predictions
about future results or events are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 (the "Act"). These statements reflect our current
expectations or beliefs, and are subject to risks and uncertainties
that could cause actual results or events to vary from stated
expectations. Given that circumstances may change, and new risks to
the business may emerge from time to time, the reader is cautioned
not to place undue reliance on these statements. The company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Information concerning potential
factors that could affect future financial results is included in
the company's Annual Report on Form 10-K for the fiscal year ended
July 3, 2004. About G&K Services, Inc. Headquartered in
Minneapolis, Minnesota, G&K Services, Inc. is a market leader
in branded identity apparel programs and facility services in the
United States, and is the largest such provider in Canada. G&K
operates over 140 processing facilities and branch offices, serving
more than 160,000 customers.
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