Sysco replaces CEO, chairman 'to accelerate performance'

Tom Bene, outgoing chief executive officer of Sysco Corp., spoke during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Monday, April 29, 2019. Tom Bene, outgoing chief executive officer of Sysco Corp., spoke during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Monday, April 29, 2019. Photo: Kyle Grillot / Bloomberg Photo: Kyle Grillot / Bloomberg Image 1 of / 5 Caption Close Sysco replaces CEO, chairman 'to accelerate performance' 1 / 5 Back to Gallery

Sysco, the nation’s largest food distributor, said Monday that Tom Bené, who took the helm as CEO two years ago, would step down Jan. 31, to be replaced by Kevin Hourican, who most recently served as president of CVS Pharmacy and executive vice president of CVS Health.

The change is being made to “accelerate performance” and “drive meaningful operating improvements,” according to a company statement.

Bené is also leaving his post as executive chairman, to be replaced by Ed Shirley, elected to replace Bené effective today. Shirley joined the board in 2016 and has served as the lead independent director since Nov. 2018. Brad Halverson will replace Shirley as the board’s new lead independent director.

Bené will stay on as an executive adviser until March 1 to help ensure a smooth transition, according to Sysco. A company spokeswoman declined to comment further.

“Tom has made many contributions to Sysco and we are grateful for his leadership, integrity and service,” Sysco said in a statement Monday morning. “We wish him well in his next endeavors.”

RELATED: Sysco earnings soar after cost cutting, corporate layoffs

Sysco, which has struggled over the past year to contain rising food and transportation costs, said the leadership change will “enable the company to accelerate performance, fully capitalize on its scale advantages and drive meaningful operating improvement.”

The company has tightened its belt as distribution costs and fuel prices have crept up. Last year it laid off nearly 300 corporate support staff in Cypress, consolidated its French subsidiaries and closed some facilities in Canada and Europe, laying off an undisclosed number of workers.

Sysco last year announced the sale of Iowa Premium, its cattle processing business, to focus on its core distribution operations, and restructured three hospitality subsidiaries, which supply hotels with bath products and bedsheets, into one entity called Guest Worldwide.

The company reported net income of $1.7 billion on revenue of $60.1 billion during fiscal 2019. Net income grew by 17 percent while sales grew by 2.4 percent year over year. The company markets, sells and distributes chilled and frozen food products to restaurants, hospitals, schools, hotels and other institutional clients. The company operates 330 distribution facilities worldwide, serving more than 600,000 customer locations.

Sysco stock was up 0.34 percent in early morning trading to $85 per share.