Howard S. Cohen resigned today as president and chief executive officer of GTECH Holding Corp., the West Greenwich-based maker of lottery systems. Cohen, 55, who served about 16 months at the helm of GTECH, cited “a desire to pursue personal and business interests and return to Chicago,” where he lived prior to taking the position at GTECH, according to a company statement.
W. Bruce Turner, GTECH’s chairman, will replace Cohen effective immediately, the company said. Turner served as interim president and CEO for several months prior to Cohen’s appointment after GTECH’s previous CEO, William O’Conner, was forced out following the revelation in 2000 that the company allegedly tried to cover up glitches in its software for Britain’s lottery.
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Cohen’s resignation came as a surprise to Tom Graves, a Standard & Poor’s analyst who covers GTECH. But Graves said he has no reason to think that the resignation signals any significant underlying problems at the company.
“The timing is kind of surprising, but I think the departure of Mr. Cohen should not significantly undermine the progress GTECH has made in recent years improving its position with investors and customers,” Graves said.
Graves added, however, that the chronic turnover at GTECH’s highest post would be not be viewed favorably by investors. Cohen’s resignation marks the fifth time in less than seven years that GTECH has changed its chief executive.
“Certainly it would be the preference of GTECH’s investors and customers to have continuity of good management,” he said.
There was no public mention of Cohen’s pending departure at GTECH’s annual shareholders meeting Monday, where shareholders voted in three new directors and approved a stock-option plan for the company.
“It is my belief that the solid financial foundation that Howard and the senior management team have established will provide us with an excellent platform for continued growth,” Turner said in a written statement.
The company reiterated its projected earnings for the second quarter and full fiscal year. GTECH also said that it expects the board to elect a new, non-executive chairman “in the near future.”
GTECH’s stock price came under pressure following the news of Cohen’s resignation this morning, losing $1.13, or nearly 6 percent, to $18.62.
