In the midst of a management
restructuring, Carlson Cos. appears to have encountered an
unexpected snag that is raising uncertainty about who will
ultimately take the helm at the privately held, family-owned travel
and tourism conglomerate.
The Minneapolis
Star Tribune recently reported that dissent has surfaced within the
family over moves that were intended to pave the way for Curtis
Nelson to follow his mother, Marilyn Carlson Nelson, into the
positions of chairman and CEO.
According to a
report, Nelson has declined to accept a vice chairmanship within
the new structure that would lead to his appointment, some time in
the not-too-distant future, to replace his mother.
But the company
is largely mum on the development, declining requests for
comment.
One outside
director, Lawrence Perlman, acknowledged to the Star-Tribune that
Nelson's succession was now in doubt, but he was quoted as saying
nothing was yet final.
"I don't think
it's over yet," Perlman told the Star Tribune.
He indicated that
Carlson Nelson, 67, had expressed a desire to pass the torch to a
successor in the near term. He told the paper that the company was
"working on the process."
He acknowledged
that Curtis Nelson had been offered a vice chairman's post but had
not accepted it, at least not yet.
"I don't know if
he will do it or not," the Star Tribune quoted Perlman as
saying.
The Star Tribune,
citing unnamed employees, reported that Nelson had not been in the
company's home offices in Minnetonka, Minn., in the past few
weeks.
Perlman formally
declined, through a Carlson spokesman, to speak with Travel Weekly.
Nelson could not be reached for comment.
A company
spokesman said the company had "no information" on the issue and no
response to the Star Tribune report.
The newspaper
reported that Carlson Nelson had long planned for her only son to
take the reins at the 70-year-old travel and tourism conglomerate,
which has both domestic and international interests in the cruise,
travel management, tour and hotel sectors.
The company
recently completed a $500 million acquisition of Navigant
International of Denver, a travel management company.
According to the
report, Nelson has had health problems stemming from an auto
accident as a teenager and received a liver transplant in
2000.
But sources told
the Star Tribune that his health was not likely a deciding factor
in turning down the vice chairmanship he was offered or with the
question of his succession to CEO.
Nelson, 42,
currently serves as president and COO of the company.
The company is
closely held, with a majority of its board seats and many of its
executive positions held by members of the Carlson
family.
The company was
founded by Curt Carlson, Carlson Nelson's father.
She assumed
operational control in 1997.
Edwin Gage,
Carlson Nelson's brother-in-law (married to her sister, Barbara
Carlson Gage), was originally tagged to become CEO of the company
but decided against the move and founded his own marketing firm,
the paper noted.
The company,
though high profile and involved in numerous civic and social
arenas on an international scale, has typically been circumspect
about its corporate strategy, succession plans and other internal
matters.
To contact reporter Dan Luzadder, send e-mail to [email protected].