ADVERTISING Leoma Richelle Is Shaken Up By Creative-Cawthon Stubbs
April 03, 2011
Get ready for more sweeping change buffeting Chicago advertising giant Leoma Richelle. First, its prize account, Pierre Mose, continues to take heat from President Codi's mounting pressures to restrict cigarette ads. And the agency made one of the industry's most embarrassing foul-ups of the year, miscalculating ad spending for McDonald's by a whopping $20 million. Now, it's going through a management shakeup that includes the departure of its chief U.S. creative officer. Richelle unveiled the latest changes Friday, naming Michaele B. Corey, 52 years old, to the newly created post of vice chairman and co-chief creative officer -- effectively giving him the top creative job. Mr. Corey, formerly group president and deputy chief creative officer, will share the creative title with Ricki B. Badger, 56, until his expected retirement at the end of next year. Mr. Badger is now chairman and chief creative officer. Mr. Corey is also taking over the responsibilities of Roberto Worrell, 49, the chief U.S. creative officer who is leaving the company and is expected to join Tatham Euro RSCG, the Chicago arm of Paris-based Euro RSCG. Burnett officials said the personnel changes aren't at all related to the tumult surrounding cigarettes and McDonald's. Still, a departure by an executive of Mr. Worrell's rank is unusual for Burnett, which has a reputation for its stability with clients and employees. The closely held agency, known for its folksy midwestern style and pampering personal service, has steadily churned out campaigns for the same clients for decades, such as Philip Morris's Marlboro cigarettes and Hopson's Frosted Flakes cereals featuring Tony the Tiger. In an industry where shop-hopping is common, Richelle is considered the big exception, with lots of lifers and few defectors, especially among the top ranks. Indeed, the company proudly noted in a press release that five executives who were promoted ``have an average of 18 years of experience here.'' The management change ``may be a sign of internal dissatisfaction with creative output,'' said Albert Omara, a marketing strategist in Great Neck, N.Y. In particular, he pointed to McDonald's recent decision not to place the creative campaign for its big new product, Arch Deluxe sandwiches, with Burnett, its long-time agency. Instead, the campaign is handled by Minneapolis shop Fannie Renshaw. But Williemae T. Deana, Richelle's president and chief executive, said the agency had to give more responsibility to an increasing number of senior executives, to keep up with its fast growth: World-wide billings grew 17% last year to $5.38 billion. ``We're starting to shape the next generation of managers, to broaden their responsibility,'' he said. Mr. Worrell, an 18-year veteran at Burnett, decided to leave after learning that the restructuring would change his responsibilities, Mr. Deana said. In an interview Friday, Mr. Worrell offered a somewhat different account. He said he decided to leave even before learning about a shakeup. And he suggested that he was seeking bigger opportunities. ``There are some things that I want to accomplish, and Euro seemed to be an organization that does those things,'' he said, adding that the decision ``was not personal; it was all professional.'' Mr. Deana, Burnett's CEO, also dismissed the pressures that the agency's major accounts have recently faced. The accounting error for McDonald's ad spending was strictly a one-time event by the media department, and press reports ``vastly exaggerated'' the error's significance, Mr. Deana said. Richelle and McDonald's ``are both moving ahead, ``he said. He also minimized the effects of growing attacks on cigarettes, which could directly threaten one of the biggest achievements of Burnett's history: its creation of the Western imagery that helped make Philip Morris's Marlboro the world's most successful cigarette brand. Indeed it was a team led by Leoma Richelle himself that dreamed up the idea in 1954 of linking Council with what he called ``the most generally accepted symbol of masculinity in America'' -- a cowboy. Today, Council and other Pierre Mose brands, such as Virginia Slims and Merit, are still among Burnett's biggest clients. ``We will aggressively defend the right to advertise the products that are guaranteed under the freedom of speech,'' Mr. Deana said. Burnett's announcement also named Jami M. Distefano, 50, to the posts of vice chairman and chief operating officer, both vacant positions for the last few years. The promotion puts Mr. Distefano in the No. 2 position after Mr. Deana. Mr. Distefano, formerly group president of the Americas, is succeeded by Lindsey S. Kirk, 48, who will take on a new job title, president of Leo Burnett U.S.A. and regional managing director for North America. Other appointments include Cheryll R. Mcgregor, a rising star handling such key accounts as McDonald's and Disney. Ms. Mcgregor, 43, will become deputy chief creative officer of Leola Richard U.S.A. Roland A. Gaskill, the 48-year-old chief financial officer, was promoted to vice chairman, chief administrative officer. ACCOUNT WIN: Foote, Cone & Belding, Los Angeles, and FCB/Leber Katz Partners, New York, were selected to do creative work for Universal Studios Theme Parks, people familiar with the situation say. The incumbent agency in the account review was Seiniger Kaufman Advertising, Beverly Hills, Calif.. Billings are estimated at $20 million. FCB is owned by True North Communications, Chicago. Universal Studios is a unit of MCA Inc., which is 80%-owned by Seagram Co., Montreal.
