Black Box Hires New CEO After Rocky Sales Reorganization

The search for a new CEO at Black Box Network Services has ended with the naming of a veteran executive whose resume includes top-level roles at supply-chain technology company Flextronics International.

The new CEO, E.C. Sykes, will succeed Michael McAndrew on Feb. 29, Black Box said Tuesday.

McAndrew revealed his resignation in December after 13 years as an executive with the company, the last 33 months as CEO.

[Related: Black Box CEO to Step Down Following Rough Year]

Sykes will also sit on the board of directors at Lawrence, Pa.-based Black Box -- No. 34 on CRN's 2015 Solution Provider 500 list.

Sykes, hired after a national search, has been a consultant, investor and board member of private, public-private and educational organizations since 2014, when he left his job as CEO at Cincinnati-based LED company Switch Lighting in 2014 after a year.

"He has shown the ability to dramatically grow businesses profitably," board Chairman Thomas G. Greig said in a statement. Sykes "is also noted for his entrepreneurial skills and ability to collaborate with clients to create unique, value-added solutions. That will serve Black Box well in our dynamic markets as we continue to add relevant IT solutions to our portfolio," Greig said.

Before moving to Switch, Sykes worked at Flextronics, based in San Jose, Calif., for 14 years, rising from the position of general manager to executive officer and president of the industrial and emerging products group.

While at Flextronics, Sykes served as vice president of operations in Guadalajara, Mexico -- where he grew annual revenue from $625 million to more than $4 billion, according to a statement released by Black Box.

During his time at Flextronics, its international business group employed more than 35,000 workers, operating at 60 manufacturing sites in 19 countries, and saw its customer base expand by more than 400 clients in 10 markets.

McAndrew announced his resignation at the end of a rocky 2015, which included a restructuring of Black Box's sales force and a 62 percent drop in its stock to an all-time low.

However, McAndrew will stay on with BlackBox until June 3 to assist Sykes as he transitions into his new role, the company said. The outgoing CEO will then receive a severance package equal to nine months' base salary, or about $412,500, the company said.

Last year, McAndrew called out his sales force for underperforming during the company's October and January earnings calls, calling their performance "unacceptable" as a major restructuring over the past year had failed to increase revenue or bookings.

McAndrew told investors to expect continued slow sales from Black Box’s federal and commercial customers until at least March.

As part of a plan to resolve the sales issue, McAndrew said, the company expects to replace an additional 10 percent of the company's sales force, moving the number of supplanted sales employees from 20 percent to 30 percent since the start of 2015.

In a statement in December when he announced he would resign, McAndrew said he believed that "with our transformational efforts well underway,’ it was the right time to leave.

In the company’s statement, Greig wished McAndrew well and complimented him on his courage in leading the company's transformation into a "fully integrated enterprise."

In the BlackBox announcement, Sykes called the opportunity to lead the company "an honor and a privilege," citing that he’s impressed with the company's strong client base and diverse geographical reach.

"I look forward to working with our more than 3,500 team members to leverage these assets and take the company to the next level," he added.

According to a Black Box filing with the U.S. Securities and Exchange Commission, Sykes will be paid a base salary of $650,000 and will be eligible to participate in annual and long-term incentive programs. His annual incentive target is expected to be 100 percent of base salary and his long-term incentive award is expected to be $2 million.