Goodyear CEO Mark Stewart Steps Down; Board Member Roger Wood Named Interim Chief

Goodyear said Monday that Mark Stewart has stepped down as chief executive officer and president, effective immediately.

Roger J. Wood, a director since 2023, becomes interim chief executive officer and president. The board is searching for a permanent successor with an executive search firm.

The company's Form 8-K, its report for major events, puts the appointment effective November 8. It characterizes Stewart's departure as a termination other than for Cause under the executive severance plan.

Goodyear is one of the world's largest tire companies. It employs about 60,000 people across 46 facilities in 19 countries.

Shares fell about 2% in intraday trading on Monday. The snapshot is as of 3:39 p.m. ET, from Friday's $4.36 close.

That move is intraday only, not a settled reaction. Monday's closing price is the first settled verdict.

The board calls it the right moment

"Goodyear has made meaningful progress in becoming a more efficient and focused company," said board chair Joe Hinrichs.

The board believes this is "the right moment to transition leadership to accelerate that progress," he said. "We thank Mark for his contributions to Goodyear," Hinrichs said.

Hinrichs cited Wood's automotive and industrial chief executive experience. He said Wood knows Goodyear and has the board's full confidence during the search.

The strategic review started earlier this year

A special committee of the board was formed earlier this year. It is reviewing the company's businesses and operations.

The review covers the business mix and the manufacturing footprint. It also covers efficiency and investment in new products and capabilities.

The board is doing that work together with the Enterprise Transformation Office.

The company gave no timetable for the review. It does not intend further updates unless the board decides disclosure is appropriate or required.

No sale, closure or job action was announced on Monday. The announcement changes the leadership, not the portfolio.

Wood's brief starts with execution

"As I step into this role, my immediate priorities are to support our associates and customers, sharpen execution," Wood said.

"Goodyear has iconic brands, talented people and significant opportunities to improve performance," he said. He said the review work must become actions that strengthen performance.

Wood previously served as co-chief executive officer of Tenneco. Tenneco supplies clean-air, powertrain and ride-performance systems.

He also serves on the boards of PHINIA and Brunswick. He brings more than three decades of automotive and manufacturing experience.

Wood stays on Goodyear's board during the interim period. He steps down as chair of its human capital and compensation committee. Filing reports say he will not serve on the governance committee either during that period.

The change follows a weak third quarter

Goodyear reported third-quarter results five days earlier, on November 4. Net sales fell 2.3% from a year earlier to $4.5 billion.

Organic net sales rose 1.6% after adjusting for two divestitures. The company sold its Chemical business and the Dunlop brand.

The GAAP net loss was $238 million, or $0.82 per share. GAAP is the standard U.S. accounting basis for reported results.

The adjusted net loss was $31 million. A year earlier, the company posted adjusted net income of $82 million.

Adjusted results exclude significant items the company lists separately. They included $148 million of pre-tax rationalization charges, its restructuring costs.

Segment operating income fell to $174 million from $287 million. It sums profit across the company's business segments.

Tire unit volume fell 3.3% to 38.6 million units. Replacement-market weakness drove the decline, partly offset by higher original-equipment volumes. Original equipment means tires fitted on new vehicles.

Stewart had called the quarter's performance below expectations. "Our financial performance remains below our expectations," he said last week.

The quarter also brought a dedicated transformation office. Stewart set it up to pursue broader operational and strategic opportunities.

Stewart's tenure lasted under three years

Stewart became chief executive on January 29, 2024. He joined from Stellantis, where he ran North America operations.

He succeeded Richard J. Kramer, who retired after 14 years as chief. Stewart's mandate centered on the Goodyear Forward transformation plan.

A new finance chief still arrives December 1

Jerome Rouquet will join as executive vice president and chief financial officer on December 1. Goodyear announced that appointment on October 27.

Rouquet is currently chief financial officer of Visteon. He previously held senior finance roles at Tenneco and Federal-Mogul.

He succeeds interim chief financial officer Scott Deakin. Deakin will support a seamless leadership transition, the company said.

What remains unknown

What remains unknown starts with the permanent chief executive. The board gave no timetable for its search.

What the strategic review will recommend is also unknown. No portfolio or footprint decision has been announced.

Whether further leadership changes follow is unknown. Only the chief executive change and the December finance arrival are set.

The settled market verdict is unknown as well. The intraday fall is known; Monday's closing price is not.

The search and the review are the next tests

What to watch: the board's permanent chief executive appointment. Its timing will signal how long the interim arrangement runs.

Any strategic review update is the second test. The company has said updates come only when the board decides.

Rouquet's December 1 start is the third test. So are fourth-quarter results, the first reported under the new leadership.