Tyson Foods board names new CEO
Former executive Tom Hayes was in midst of overhauling company’s strategy
Tyson Foods Inc. said Chief Executive Tom Hayes, in the midst of overhauling the top U.S. meat company’s strategy, will leave that role at the end of this month for personal reasons.
Tyson said Monday that Noel White, a longtime Tyson executive who has overseen chicken, beef and pork processing, will become its new chief executive.
The abrupt change comes less than two years into Mr. Hayes’s tenure, in which he has focused on revamping Tyson’s executive leadership team and repositioning the 83-year-old meat giant as a modern food company marketing branded consumer products.
No issues of personal conduct or integrity played into Mr. Hayes’s decision to leave, a Tyson spokesman said. Mr. Hayes didn’t immediately respond to a request for comment.
Mr. Hayes in the statement said
it “is a very difficult decision to leave Tyson Foods, but after careful consideration and discussions with my family and the board, I know it is the right thing to do.”
The company, based in Springdale, Ark., reiterated its guidance for the year and still expects adjusted earnings to be between
$5.70 and $6 a share. Shares of Tyson, down 22% year to date, fell 2.8% premarket.
Tyson and other U.S. meat processors have struggled in recent months as domestic production of beef, chicken and pork rises to record levels, pushing down wholesale prices. Trade disputes have led to tariffs on U.S. meat products in top export markets like Mexico and China, while rising freight costs have driven up costs for food suppliers and other companies. Tyson in late July cut its profit forecast for the year, but touted the performance of its prepared foods business.
Tyson’s board considered a number of candidates to succeed Mr. Hayes, the spokesman said, and chose an experienced executive from its own ranks. Mr. White spent decades managing Tyson’s meat-processing operations in the U.S. and overseas, joining the company in 2001 via Tyson’s acquisition of beef and pork supplier IBP. He was president of Tyson’s core poultry business from 2013 to 2017, and most recently has been president of its beef, pork and international operations.
“Noel is a proven leader who has played an integral role in our enterprise leadership team for many years,” company Chairman John Tyson said in a statement.
Tyson’s board had considered Mr. Hayes uniquely suited to the CEO role, given his background managing supply chains for Hillshire Brands, the owner of Jimmy Dean sausages and Ball Park hot dogs, which Tyson acquired in a $7.7 billion deal in 2014.
Hillshire has become the engine for Tyson’s expanded push into branded consumer goods, part of a strategy that aims to reduce the company’s exposure to the ups and downs of meat prices and agricultural markets.
Mr. Hayes has also overseen a remake of Tyson’s wood-paneled executive office suite in Springdale, hiring executives from companies like Boeing Co. and HP Inc. He also named a chief sustainability officer—a first for Tyson—and oversaw investments in plant-based burgers and technology to grow meat from animal cells.
Mr. Tyson credited Mr. Hayes for accelerating change at Tyson and thanked him for his contributions.