WEST ISLIP, N.Y. -- Jim Smith, the president of the 2,500-member
GEM consortium, and five other GEM staff members resigned to form a
consulting firm called Market Share.
Smith, who will head the new operation, said the firm will offer
consulting in a number of areas in addition to travel, including
business management and training.
Al Minkoff, chairman and chief executive of GEM, which is based
here, said he was "shocked" by the resignations. "It really came
out of the blue," Minkoff said. "But GEM is a very deep consortium,
and I'm confident that its relationships with suppliers and members
will continue as usual.
"There were many underlying circumstances" that may have led to
Smith's resignation, he said, adding that "Smith was looking for
equity in the company, and I wouldn't give it to him."
Smith said he harbors no animosity toward Minkoff and maintains
that "money had nothing to do with" his decision to resign. "This
is about lifestyle change," Smith said. "This is something that
I've always wanted to do, and the six of us work so well together
as a team. This is about the ability to control our own
destiny."
Joining Smith in Market Share will be Howard Tanenbaum, former
vice president of education and training at GEM; Joanne Pelling,
former manager of industry relations; Debra Dost, former art
director; Jennifer Spaeth, former manager of membership services,
and Ann Mascolo, former membership services coordinator at GEM.
Smith said he asked others of the 26 original GEM staff members
to join Market Share, but he wouldn't expand on the scope of the
invitation.
Smith said he incorporated the Market Share name two years ago,
but the business has been dormant ever since. Smith will head the
West Islip, N.Y.-based firm, which formally will begin operations
on Sept. 1. Smith said Market Share already is working on three
consulting projects.
Minkoff said everything is "business as usual" at GEM and that
he is starting a search to replace Smith.
In the interim, Sheri Pasternak, vice president of
Clearinghouse, another Minkoff-owned operation, is heading GEM.
Minkoff announced that Lauraday Kelley will take over
Tanenbaum's position as vice president of education and training
but that GEM "would not rush into anything" as it chooses
replacements.
He added that he would not draw staff from Cruiselink, which he
also owns. "I want those entities to remain separate," Minkoff
said.