This story was updated July 13, 2016 @ 9:45
Canadian Tire Corporation is making a sudden change at the top, with the immediate return of Stephen Wetmore as president and chief executive officer — roles that have been held by Michael Medline.
“The board of directors has given me a clear mandate to take our iconic brand to the next level,” the newly reinstated Stephen Wetmore said in a statement, which didn’t elaborate on what changes are contemplated under his leadership.
“Every day our customers are demanding more control over their shopping experience. We must continue to rapidly evolve the Tire to exceed both our customers’ and our shareholders’ expectations.”
The chair of Canadian Tire’s board of directors said the decision was due to unprecedented change in the retail industry, but didn’t focus on any particular issue facing the Toronto-based company.
Since Medline became CEO in late 2014, oil prices have plunged, creating economic hardship in Western Canada, and there have been inroads into the Canadian market by U.S. retailers such as Walmart and Lowe’s. There’s also been a general rise in online purchasing and digital marketing.
“While our short-term priorities are delivering results, the board’s responsibility is the long-term success of Canadian Tire. Stephen transformed our company during his previous tenure and laid the foundation for our current performance,” chairwoman Maureen Sabia said.
She said the board believed Wetmore was “uniquely qualified” to lead Canadian Tire through the increasing complexities of the new world of retail.
Medline became Canadian Tire Corp.’s president in 2013, succeeding Wetmore as CEO in late 2014. Like Wetmore, who has been vice-chairman of the board, Medline has been a director and was re-elected at the annual meeting in May.
Canadian Tire’s share prices soared in May following the release of strong first-quarter earnings.
The company’s retail segment includes the Canadian Tire automotive and general merchandise stores, Mark’s clothing stores and FGL Sports, which includes the Sport Chek banner. It also has a financial services division and real estate holdings.
Medline joined Canadian Tire Corp. in 2001 and has held several senior positions within the organization including president of FGL Sports and Mark’s Work Wearhouse, and president of Canadian Tire Automotive and Dealer Relations. He’s also chairman of the Retail Council of Canada.
According to information released before Canadian Tire’s annual shareholders meeting in May, he had a 2015 base salary of $950,000. Including share-based awards, his total compensation for 2015 was worth nearly $4 million.
“The board of directors would like to thank Michael Medline for his significant contribution to Canadian Tire Corporation over the last 15 years. Michael has been an integral part of Canadian Tire’s growth story, and we appreciate all that he has done,” Sabia said in the company’s announcement.
