PLEASANTON, Calif. — A new era is beginning at Ross Stores, as the company set out plans to elect a new CEO in 2014. At the same time, the company continues to put its trust behind vice chairman and CEO Michael Balmuth, agreeing to extend Balmuth's employment agreement through May 2016.
The agreement calls for Balmuth, 62, to continue as CEO until June 1, 2014, when he will become executive chairman. At the same time, the board expects to elect a new CEO from among its senior executives. The new CEO will report directly to the board of directors and assume responsibility for most areas of the business.
In his new role as executive chairman, Balmuth will remain an active employee of the company with property development and dd's Discounts continuing to report to him. Norman Ferber, the company's chairman of the board, will become chairman emeritus in June 2014, with his current consulting responsibilities to remain unchanged.
In commenting on behalf of the board, Ferber said, "Michael Balmuth is an exceptional CEO whose leadership has been instrumental to our long-term success. He has built a team of very knowledgeable and seasoned executives who have been extremely proficient in developing and executing the right strategies for our business. This succession plan will enable us to continue to benefit from Michael's more than two decades of significant management experience at Ross, while helping to ensure a seamless transition."
Ross Stores has consistently delivered impressive sales and profits, as it resonates with the value-minded consumer.
Looking ahead, Balmuth noted, "The board and I firmly believe this type of management transition will allow us to remain focused on executing the strategies that have been key to our outstanding financial results over the past several years. We are also confident this succession plan will help us continue to maximize future stockholder returns."