Modem Media founder G.M. O’Connell has stepped down as CEO, ceding the role to Marc C. Particelli, a business management and consulting veteran. O’Connell, who has been CEO since starting the interactive shop 13 years ago, will remain on as chairman. Robert Allen will continue as president and COO.
The organizational change will free O’Connell to work on specific client needs and building Modem’s brand in the industry, said Melissa Viglielmo, Modem Media director of corporate marketing and strategy. “Being a CEO of a company doesn’t give you the time to do that,” Viglielmo said. In turn, Particelli will focus on the company’s strategic opportunities and financial performance.
Particelli takes over at Modem Media at a particularly volatile time for the Internet sector, given the recent economic downturn and belt-tightening in interactive spending. Last month, Modem Media projected flat fourth quarter revenues of $36 million, down $1.8 million from Q3. Modem Media stock (MMPT) was trading at $3.56, up 6 cents, Tuesday morning. Its 52-week high is $56.94 and low is $2.50.
The Norwalk, Conn.-based company, which initiated the CEO search two months ago, said the top-level change wasn’t in reaction to the dot-com slide. “We started the search before the industry hit the lowest point of its downward trajectory,” said Viglielmo. “We want to marry people into the organization, so we have a mixture of the old and the new economy.” Last week, Modem Media tapped Frank Connolly, formerly of E-Sync Networks, to fill the CFO post.
Particelli comes from Oak Hill Capital Partner, L.P., where he helped manage a number of portfolio companies. Prior to that, he was a partner on the private equity side at Odyssey Partners, L.P., a $3.5 billion hedge fund. He began his career at Booz Allen, where he worked in a series of management positions during his 21-year tenure.
In making the management change, Modem Media follows the lead of several interactive agencies. Last week, Atlanta-based interactive consultancy iXL announced that its chairman and founder U. Bertram Ellis, Jr., would relinquish the post of president and chief executive to PricewaterhouseCoopers retail analyst Christopher Formant. In December, Digitas president Kathy Biro resigned as president of the Boston-based Internet and direct marketing firm and turned over the role to chief operating officer Michael Ward.
Separately, Royal Philips Electronics of the Netherlands has expanded its relationship with Modem Media. The interactive agency is charged with developing and designing Web applications for Phillips’ Consumer Electronics and Domestic Appliances and Personal Care divisions. Terms of the deal were not disclosed, but Viglielmo said the multimillion-dollar Phillips’ business makes the electronics company a top-10 client of the Modem Media.
Modem Media CEO Steps Down
