Ulta Salons + U.S. Cellular
Ulta Salons + U.S. Cellular: Chuck Rubin (CEO) + Mary Dillon (CEO)
In July 2012, Michaels CEO John Menzer resigned after suffering a stroke in April 2012. Michaels CFO Charles Sonsteby and Lew Klessel, a managing director of Bain Capital Partners LLC, took on the interim CEO position until February 2013. That is when Chuck Rubin left UIta Salon Cosmetics & Fragrance (with $2.22 billion in fiscal 2012), for Michaels, (largest arts and crafts retailer with $4.6 billion in sales), which created a double butterfly effect.
Mary Dillon, CEO at U.S. Cellular, resigned her post to become CEO of Ulta Salon. During Rubin’s tenure, Ulta’s share price quadrupled and sales rose 22 percent. Following his departure, Ulta’s stock fell 11.7% and Credit Suisse downgraded it from “outperform” to “neutral.” For Dillon, she moved to a much smaller company with a significantly lower salary. The original Michaels’ departure caused all that trouble.