CEO of Cleveland/Srixon Golf Greg Hopkins Resigns

[mvmac]

This comes as kind of a shocker from a guy that has been so dedicated to the Cleveland brand.  What prompted his resignation?  Doesn't seem that anyone knows for sure but here is E. Michael Johnson's story about Greg Hopkins

Quote:

Saying, "Now I'm at a point in my life where I want to do some things and explore some ideas that I've always wanted to pursue,"  Greg Hopkins, after 16 years with the company, has resigned as CEO of Cleveland/Srixon, effective immediately. Hopkins officially tendered his resignation to the Board of Dunlop Sports in Kobe, Japan yesterday. No successor was immediately named, although Todd Harman remains as the company's president.

Hopkins, 57, oversaw a company that had some peaks and valleys during his tenure at the helm. Hopkins, who started with the company as president in 1997, was named CEO in 2003. At one point in the early 2000s Cleveland rose as high as No. 2 in iron market share and enjoyed a market leadership position in wedges. In recent years, however, the company's shares in both those categories have declined. In 2007, Cleveland was purchased by SRI Sports Ltd. (parent of Srixon) for $132.5 million. (SRI Sports Ltd. changed its name to Dunlop Sports Co. Ltd. in May. The company is the sporting goods subsidiary of Japan-based Sumitomo Rubber Industries.)

"Being the CEO of Cleveland/Srixon was demanding on my time and certainly that takes a toll on the family," said Hopkins, who noted a desire to spend more time with his family as well as five grandchildren. Hopkins also has several outside interests to occupy his time as well, having at various times in his life been a black belt in Tae Kwon Do when he wasn't swimming with sharks (literally). Today Hopkins is more content to focus on his passion for golf. Currently possessing a +0.5-handicap index, Hopkins has played in two Senior British Opens, Hopkins also teed it several times in the Toshiba Classic on the Champions Tour. More recently he has taken to aviation, and said he is looking forward to having more time to fly planes.

As for what those ideas are that he wants to pursue, Hopkins merely said, "Well, now I'll have some time to contemplate that, won't I?

[moparman426]

Probably wanted to add 17 yards to his fairway woods.....

[TourSpoon]

Originally Posted by moparman426

Probably wanted to add 17 yards to his fairway woods.....

Get serious!

I heard they found a tricked out Vokey in his bag with the snowflake stamp "GH" all over it.

[newtogolf]

It's tough for companies this size to compete with the huge marketing budgets of TaylorMade, Titleist and even Callaway (though they're wasting their money).  Cleveland currently is best known for their GI wedges.  I understand their older irons are outstanding but the current ones don't seem to get much love or attention in the magazines, same with their woods.  Bradley is a good rep for them, but he hasn't been in contention enough to help them break through.

When market share declines and the corporate financials aren't good, the CEO takes the hit, so could be this was a way for him to leave on his terms before they gave him the axe.

[TourSpoon]

It took a while for Roger Cleveland's departure to hurt the company, but once the old 588s lost market share, it only seemed that Cleveland was doomed. I am surprised they made it this long. In the day, Cleveland was the iron/wedge to sport. Not so much these days and that is a shame.

[newtogolf]

If you look at the mess Roger Cleveland has made of Callaways Razr irons I'd say he did them a favor leaving when he did.

Originally Posted by TourSpoon

It took a while for Roger Cleveland's departure to hurt the company, but once the old 588s lost market share, it only seemed that Cleveland was doomed. I am surprised they made it this long. In the day, Cleveland was the iron/wedge to sport. Not so much these days and that is a shame.

[TourSpoon]

If you look at the mess Roger Cleveland has made of Callaways Razr irons I'd say he did them a favor leaving when he did.

Didn't he join Cally in 96?

[newtogolf]

Yes, but he didn't seem to have much of an impact until 2002 when Callaway first released their forged wedges and set up their new production facility.

Originally Posted by TourSpoon

Didn't he join Cally in 96?

[mvmac]

Quote:

Originally Posted by newtogolf

Yes, but he didn't seem to have much of an impact until 2002 when Callaway first released their forged wedges and set up their new production facility.

Yes he joined Cally in '96 but played a big part in their iron success with the X line of clubs.  Here's part of an old press release

I really like the guys at Callaway but they need to go back to irons that resemble the X-12 to X-20 lines imo

Quote:

CARLSBAD, Calif., Jan. 12 /PRNewswire/ -- Callaway Golf Company (NYSE: ELY) today announced the introduction of its latest product breakthrough, the Big Bertha(R) X-12(TM) Irons. These new stainless steel irons, which will replace the existing line of Big Bertha Stainless Steel Irons, have an exciting new look, several significant new features and more of the advanced playability benefits that golfers around the world have come to expect from Callaway(R) woods and irons.

Designed by Callaway's Senior Executive Vice President and Chief of New Products Richard C. Helmstetter, and his team, including renowned club designer Roger Cleveland, the new Big Bertha X-12 Irons have a sleek, good- looking profile.

[WUTiger]

Originally Posted by newtogolf

...  Cleveland currently is best known for their GI wedges.  I understand their older irons are outstanding but the current ones don't seem to get much love or attention in the magazines, same with their woods. ...

The CG16 and CG16 Tour irons had a good run, from what I understand. Player's reps from two different golf shops this spring said CG16 family irons were usually backordered  - not enough in the supply chain.

[Clambake]

I'm pretty certain that this was a Board-decision and not Hopkins idea.     Clues include his tendering a resignation effective immediately, no successor identified yet, and Hopkins comment of "Now I have some time to contemplate that, won't I?" when asked what interests he will pursue.      If this was a planned event by Hopkins, he certainly would have worked out an orderly succession plan with the Board and already have a feel what he wanted to do next and not be some sarcastic response to the reporters question.    This isn't how a CEO resigns on his terms....this was a Board decision that requested his resignation and he complied.

[newtogolf]

I agree, the Board gave him the option to resign or be fired, he resigned.  What I meant by his terms is he took the option to save face and resign versus the humiliation of being fired.

Originally Posted by Clambake

I'm pretty certain that this was a Board-decision and not Hopkins idea.     Clues include his tendering a resignation effective immediately, no successor identified yet, and Hopkins comment of "Now I have some time to contemplate that, won't I?" when asked what interests he will pursue.      If this was a planned event by Hopkins, he certainly would have worked out an orderly succession plan with the Board and already have a feel what he wanted to do next and not be some sarcastic response to the reporters question.    This isn't how a CEO resigns on his terms....this was a Board decision that requested his resignation and he complied.

[jamo]

It's tough for companies this size to compete with the huge marketing budgets of TaylorMade, Titleist and even Callaway (though they're wasting their money).  Cleveland currently is best known for their GI wedges.  I understand their older irons are outstanding but the current ones don't seem to get much love or attention in the magazines, same with their woods.  Bradley is a good rep for them, but he hasn't been in contention enough to help them break through.  When market share declines and the corporate financials aren't good, the CEO takes the hit, so could be this was a way for him to leave on his terms before they gave him the axe.

Isn't Cleveland owned by Sumitomo? I don't know much about the relationship between a large corporation like that and the brands it owns, but Sumitomo certainly has the capital. Their drivers got a lot of good reviews this year, but the did seem to have a problem marketing them against TaylorMade and Callaway (and the likes). [quote name="Clambake" url="/t/62366/ceo-of-cleveland-srixon-golf-greg-hopkins-resigns/0_30#post_772120"]...Hopkins comment of "Now I have some time to contemplate that, won't I?" when asked what interests he will pursue... [/quote] I'd like to recommend golf, if I could. :-)

[Clambake]

Originally Posted by newtogolf

I agree, the Board gave him the option to resign or be fired, he resigned.  What I meant by his terms is he took the option to save face and resign versus the humiliation of being fired.

It probably isn't so much an option to save face and avoid humiliation but instead a mutually agreeable approach to avoid potential litigation costs and probably get out of some of his employment contract terms.     It clearly was a case of him being let go by the Board but his employment contract probably had clauses for dismissal for cause and how those affect options vesting, so simply having him resign makes that separation easier.   We'll never know the terms, but it is likely to have involved things like automatic full vesting of options in lieu of a severance, him agreeing to waive all rights for any future damages, etc.    It's just a cleaner way to do it.

Start keeping an eye on exec recruiter trade publications for someone like Korn-Ferry or Heidrick & Struggles to announce that they've been retained by a major corporation in the sports equipment industry to conduct a CEO search.....

[dak4n6]

Sure hope the 588s become discontinued and go on sale soon.

[BuckeyeNut]

Cleveland made possibly the worst iron ever created in the modern era of golf back in the 1990s.....

LOL......does anyone remember these?    Hideous....................

[sean_miller]

Originally Posted by BuckeyeNut

Cleveland made possibly the worst iron ever created in the modern era of golf back in the 1990s.....

LOL......does anyone remember these?    Hideous....................

They were pretty horrible. Luckily they used the VAS technology in the TA3, 4, 5, 6, 7 and beyond. They were the golf club equivalent of a car show prototype that never should have made it to market. Oh wells.

.

[TourSpoon]

Originally Posted by BuckeyeNut

Cleveland made possibly the worst iron ever created in the modern era of golf back in the 1990s.....

LOL......does anyone remember these?    Hideous....................

Corey Pavin did OK with these in the 95 US Open...even if they were the Edsel of golf clubs.