Williams Names Malcolm President, COO; Bailey to Retire
The board of directors of Williams named Steven J. Malcolm president and COO effective immediately. Formerly president and CEO of Williams Energy Services and executive vice president of Williams, Malcolm also was elected to the board. Keith E. Bailey, 59, will relinquish his responsibilities as president of the company and will remain chairman and CEO until his expected retirement at the next annual meeting of shareholders on May 17, 2002. Bailey was elected president in 1992 and chairman in 1994.
"Our announcement today is the next step in the planned transition that was formally announced in March," said Bailey. "I have great confidence in the board's decision to put Steve in line to replace me. I know that the company is in excellent hands. He has 31 years of industry experience, the last 17 with Williams."
Bailey said that from 1998, when Malcolm was named to lead the energy services unit, the business group has grown its profitability from $395 million per year to potentially more than $2 billion this year.
"Under his leadership, Williams successfully completed major acquisitions -- such as significant western Canadian natural gas gathering assets in late 2000 and most recently Barrett Resources, a premier natural gas exploration and production company,'' Bailey said. "Steve also led a disciplined analysis of our entire portfolio of lightly [regulated] or unregulated energy assets. This has resulted in Williams selling a number of businesses that did not fit our strategic focus, as well as the investment of significant capital in the businesses that reflect that focus -- some $8.3 billion from 1998 through the end of this year's plan. Earlier this year, we completed an initial public offering of a master limited partnership that has been described as one of the most successful of the year.''
Bailey said it is a good time for the company to make this transition. "We remain on track to produce earnings this year consistent with our previous guidance and to be positioned to grow from that level by 20% per year for the foreseeable future. That level of performance will support Steve and his management team as they continue to work to produce the kind of results our shareholders have come to expect.''
Malcolm becomes the sixth president of Williams since it became a public company in 1957, following Bailey, Vernon T. Jones, Barry J. Galt, Joseph H. Williams and John H. Williams.
Bailey said the Office of the chairman formed earlier this year to begin shaping the transition will be dissolved. Cuba Wadlington Jr., president and CEO of Williams' gas pipeline unit who was appointed to the office to aid in the transition, will continue to head Williams' gas pipeline division. He also will remain an executive vice president of Williams.
Malcolm said he expects additional announcements throughout the balance of this year as decisions are made to re-align the management structure of Williams, further improving the company's capability to compete in domestic and international energy markets.
Malcolm joined Williams in 1984 from Cities Service Co. He holds a bachelor's degree in civil engineering from the University of Missouri - Rolla, and has attended advanced management training courses at Northwestern University.
©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.