3M Terminates Veteran Executive, Citing Unfit Personal Behavior

Wall Street Journal.- 3M, the manufacturer, has terminated the company’s president, Michael Vale, citing his “inappropriate personal conduct and violation of company policy.” 3M fired the longtime executive, who had been with the company for over 30 years and had served as group president and chief business and country officer, for cause, effective from Friday.

3M made the decision to take action after confirming the breach of company policy. Although the company did not disclose the specific violation, it emphasized that the breach had no connection to 3M’s operational or financial performance.

Michael Vale has not yet responded to requests for comment. In Monday morning trading, 3M shares saw a slight decline, in line with broader U.S. stock indexes.

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The Minnesota-based manufacturer, known for Scotch tape and Post-it Notes, is undergoing a transformation amidst job cuts, declining sales, and the planned spinoff of its healthcare business, which contributes to approximately 25% of the company’s revenue. Additionally, 3M is facing litigation related to military-grade earplugs and persistent chemicals.

In the first quarter, the company reported $8 billion in sales, surpassing analysts’ expectations, but down 9% compared to the same period last year. As part of its efforts to streamline operations and achieve annual pretax cost savings of $700 million to $900 million, 3M plans to reduce its global workforce by approximately 10%.

In April, the company promoted Michael Vale to a newly created role on the corporate operations committee, with a direct reporting line to Chief Executive Mike Roman. He was responsible for overseeing 3M’s safety and industrial, transportation and electronics, and consumer business groups, as well as emerging markets.

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During 3M’s first-quarter earnings call, CEO Mike Roman highlighted that Vale’s promotion would contribute to positioning the company for the future. The healthcare business group, which was not under Vale’s purview, is set to be spun off into a separate company by the end of the year.

3M has initiated a search for Michael Vale’s successor, and the leaders of the segments previously overseen by Vale will now report directly to CEO Mike Roman. Vale, who holds a Ph.D. in chemistry from the Massachusetts Institute of Technology, also serves on the board of directors of Toro, a Minnesota-based manufacturer of lawn and snow equipment.