Sara Lee's CEO takes temporary leave

Sara Lee's CEO takes temporary leave

Sara Lee's CEO takes temporary leave

Sara Lee Corp. said Brenda C. Barnes, its chairman and chief executive, has left the company temporarily for medical reasons, with the food maker's lead independent director and chief financial officer to take over those roles, respectively, in her absence.
 
Finance chief Marcel Smits, who will serve as interim CEO, is new to the company, having joined in October. Lead independent director James S. Crown becomes acting chairman until Ms. Barnes's return. The company didn't say when she plans to resume her duties. It said that out of respect for Ms. Barnes' privacy, it wouldn't comment beyond its press release.
 
Sara Lee also formed an office of the chairman to keep strategies and operations on track. Messrs. Crown and Smits will be part of the office, as will Christopher John Fraleigh, chief of North American retail and food service.
Until Mr. Smits's tenure as interim CEO ends, Mark Garvey—a veteran Sara Lee executive—will take on the duties of chief finance officer.
 
Ms. Barnes, 56 years old, took over as chief executive in 2005, and pruned some operations. Among other deals, she recently sold the Ambi Pur air-freshener business to Procter & Gamble Co.
 
D.A. Davidson analyst Tim Ramey said Barnes had made substantial progress in turning around the company. "She's got some good traction going so I hate to have her step away for even a short while, but it sounds temporary. Smits is capable and the company is in good hands," he said.
 
Earlier this month, Sara Lee said it swung to a fiscal third-quarter loss on charges, but its earnings without them beat expectations and the company was optimistic about the future, raising its profit target for the year.
 
Sara Lee, which has been restructuring since 2005, benefitted in the recession from consumers cutting back on eating at restaurants and spending more on groceries.

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