Pitney Bowes is now on its fourth CEO in three years, with the activist investor that started it all usurping the head of the table.
Hestia Capital founder Kurtis Wolf, who has been a Pitney Bowes board member since May 2023 after the hedge fund won a proxy fight with the shipping and mailing company, took on the president and CEO mantle, the firm announced Wednesday.
Wolf succeeds Lance Rosenzweig, who is retiring from his CEO and director roles to become a consultant to the company through September. Rosenzweig took on the interim CEO role last May, replacing Jason Dies.
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As CEO, Wolf and multiple unnamed independent advisors to the business will conduct a strategic review of the company to determine how to maximize shareholder value.
A Bloomberg report on Wolf’s appointment, which went to print ahead of Pitney Bowes’ official announcement, indicated that the review would assess potential acquisitions or divestitures for the business.
Pitney Bowes will also establish a new executive planning group that is designed to ensure each of the company’s independent businesses—such as letter mailing and parcel shipping software solution SendTech and mail sorting and distribution service Presort—has the access and resources to improve cash flow, profitability and customer service.
“The company believes that establishing the EPG will enable key leaders to have stronger connectivity with the CEO, enabling them to run businesses in an autonomous, efficient manner,” the statement reads.
The group will include five of Pitney’s top execs, including: Shemin Nurmohamed, EVP and president, Sending Technology Solutions; Debbie Pfeiffer, EVP and president, Presort Services; Christopher Johnson, SVP and president, global financial services; Lauren Freeman-Bosworth, EVP, general counsel and corporate secretary; and Robert Gold, EVP, chief financial officer and treasurer.
“Looking ahead, my agenda is simple: Set a clear strategy to effectively allocate capital and ensure our people are supported so they can deliver profitable services for one of the world’s most enviable client bases,” said Wolf in a statement. “After spending several years getting to know every facet of this organization, I am excited to apply that knowledge to helping propel careers and unlocking value. There is so much opportunity at Pitney Bowes, and we have the right business leaders and employees to realize the potential in front of us.”
Wolf’s appointment puts the exclamation point on many of the decisions that Hestia Capital has driven since the activist investor won multiple board seats in the 2023 proxy fight.
Hestia first sought to replace then-CEO Marc Lautenbach along with catalyzing a board shakeup, with Lautenbach resigning at the end of the year.
In 2024, Wolf was appointed to chair the company’s newly created value enhancement committee, which oversaw plans to cut costs, pay down debt and divest non-core assets.
That committee made the determination to sell off Pitney Bowes’ Global Ecommerce segment to liquidator Hilco Global that, relieving Hestia and other activist shareholders like Ancora Holdings from what the firms felt was a burden on the business.
The GEC unit had long been a money-losing operation for the shipping company, thus making it a target for the hedge funds who sought to identify a strategic alternative for the segment. It had seen declining earnings since 2015, with Hestia believing Pitney should have been prioritizing other business segments.
Pitney Bowes also divested its fulfillment division and a Kentucky warehouse to supply chain technology company Stord last summer as its sought to continue cutting costs across the wider business.
Wolf’s appointment wasn’t the only news Pitney Bowes had to share, with the company reaffirming all aspects of its previously announced 2025 financial guidance.
The shipping services firm had called for adjusted earnings before interest and tax (EBIT) ranging between $450 million and $480 million for the year, alongside a revenue decline of 1.3 percent to 3.8 percent.
Pitney Bowes says it will buy back $150 million in shares in 2025. The board expects to establish authorize another buyback once the existing share repurchase is exhausted.
The company also intends to continue evaluating increases to its dividend, and is now on track to achieve its goal to triple its adjusted leverage ratio target by the end of the second quarter.
This is occurring a quarter sooner than previously announced and will be completed without needing to retire additional debt, giving Pitney Bowes more cash flexibility going forward.
