CEA Set to Name New Upper Management Group

Schultz Takes His Competitive Spirit to Western Initiative Media
By Tanya Irwin and Jack Feuer
DETROIT–Campbell-Ewald Advertising will unveil a major management reorganization this week, prompted by the impending departure of two top executives.
Lou Schultz, 55, vice chairman of CEA and president and CEO of sister firm C-E Communications, is leaving to join Western Initiative Media, Los Angeles, as CEO of North America, sources said. CEA and Western are both owned by the Interpublic Group of Cos.
The Warren, Mich., agency also announced the retirement of Frank Hoag Jr., 57, its president and chief operating officer, effective Dec. 31.
Executive vice president Jim Palmer, who has headed this year’s new-business growth spurt, should figure prominently in the reorganization, sources said, as will Michael Ryan, who heads CEA’s largest account, Chevrolet, as president of automotive operations.
Officials at CEA declined to comment.
Sources confirm Schultz’s appointment is prelude to his assuming worldwide CEO duties for the media management giant sometime next year, and positions Western chief operating officer Mike Lotito, 40, as his successor. Lotito will focus on day-to-day operations, while Schultz concentrates on growing the company. Schultz will also lead Western’s ongoing search for a corporate media director.
Competitors perceive Schultz as a hard charger who is confident, tough, seasoned and “old school.” His style bespeaks his background: blunt Midwestern honesty and a flair for buddy-building. Said a former top Detroit media executive, “Lou’s fair and bright, smart and political.”
Two other Schultz trademarks are sure to surface immediately out West: intense competitiveness and a focus on morale building. On Schultz’ watch, CEA won considerably more often than it lost, and he is likely to be impatient with Western’s recent slump in high-profile new-business contests.
Schultz is expected to tell the 800 staffers at Western’s L.A. headquarters that the base of operations will remain there and that he plans no mass layoffs. K