Paula Rosput Reynolds, named to take over as Safeco chief executive officer in January, said she has no contract for the post because "I'm going to live and die by my performance."
Ms. Reynolds, who was announced yesterday as the Seattle-based insurer's replacement for Mike McGavick as of Jan. 1, 2006, said that she has no signed agreement and neither she nor the company board of directors intends to enter into one.
She wants to function in her post based on results and without a contract, "because that's how I'm wired," she explained.
Ms. Reynolds is currently the chairman, president and CEO of Atlanta-based AGL Resources, an energy holding company, and has no experience within the insurance industry.
Mr. McGavick, who is leaving as CEO and chairman to stage a run for the U.S. Senate, said that Ms. Reynolds was brought on board because of her ability to lead.
In announcing her appointment, Safeco had noted that in her five years as AGL Resources CEO, the company expanded from a regional gas utility to a multistate, integrated energy company, doubled its share price and market capitalization, and increased its dividend by 37 percent.
"With Paula Reynolds, we get a proven CEO with great expertise in the role and in leading teams of people to success," Mr. McGavick said in a conference call with investors.
Ms. Reynolds acknowledged that at this point, "there's not anything I can say about the insurance industry or this company that would do anything but disquiet you," but added that she knows how to run a successful business.
"Over the course of a career, you do begin to develop a sense of the rhythm of commerce and the issues that propel a company forward to great success or derails them," she said.
Looking forward, Ms. Reynolds said that "major changes aren't expected" in the company's plans, but that she recognizes that Safeco's strategy must evolve along with the industry.
While Ms. Reynolds succeeds Mr. McGavick as president and CEO of the company, his position as its chairman will instead be filled by Joseph W. "Jay" Brown, who will serve as a non-executive chairman.
Mr. Brown, who also serves as chairman of MBIA Inc., a financial services company based in Armonk, N.Y., has been a member of Safeco's board of directors since 2001.
Ms. Reynolds said that Mr. Brown would serve not only as chairman, but also as a trusted advisor as she learns the intricacies of the insurance industry. As part of his duties, Mr. McGavick said that Mr. Brown would be on hand to help at Safeco five days of every month.
Mr. McGavick, who has announced himself as a Republican primary candidate for the Washington Senate seat, will step down as CEO and chairman of the board on Dec. 31, but will continue to aid in the transition for two months.
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