Bess Takes Over at Y&R in N.Y.

NEW YORK — Ron Bess, CEO of Young & Rubicam’s Diversified Communications Group, is taking the reins of Young & Rubicam’s flagship New York office, replacing Stephanie Kugelman, who ran the office for two years, sources said. Kugelman is being moved to a new global post: vice chairman and chief strategic officer.

Bess, 54, becomes chairman and CEO of the New York office. The changes take effect June 1, after a difficult year of client turnover, during which Y&R lost several high-profile accounts, including Citibank, KFC, the U.S. Army and Ericsson.

Bess’ former post will be retired, and the heads of Y&R’s diversified units will now report to Mike Dolan, CEO of Y&R Group. Diversified Services includes Landor Associates, Burson-Marsteller, Cohn & Wolfe and Kang & Lee.

Ed Vick, Y&R’s worldwide CEO, is expected to announce the moves internally Thursday afternoon. Vick, Bess and Kugelman were not immediately available for comment.