Rob Katz is returning to his role as CEO of Vail Resorts and Kirsten Lynch is stepping down, the company announced Tuesday. The move comes on the heels of a challenging North American winter season for the global ski giant, headlined by a prolonged ski patrol strike in Park City, Utah, that created an avalanche of bad press and sent the company’s stock plunging.
Katz, 58, was CEO of the company starting in 2006 and was appointed chairperson of the board of directors in March 2009, serving in both roles until November 2021. Lynch, who stepped into the CEO role in 2021, will remain in an advisory role to the company for an interim period to facilitate a smooth transition, Vail Resorts said in a news release.
The news did not come as a surprise to investors, who have seen large companies make similar moves in recent years.
Disney, in 2022, brought back its veteran CEO Bob Iger after the board ousted CEO Bob Chapek, who was criticized for his management of the company. The move was compared, at the time, to Apple bringing back Steve Jobs in 1997.
Vail Resorts analyst Patrick Scholes likened Tuesday’s move to Starbucks reinstating Howard Schultz as CEO in 2022, a move that helped the company “reach new levels of success,” Scholes said in a note issued Tuesday.
“Investors hope that Mr. Katz can do similar for MTN,” Scholes wrote. “That said, he has his work cut out for him to bring back some shine to a company that has lost a bit of its luster the last several years.”
Scholes said the board’s decision to reinstate Katz was likely the result of a drumbeat that had been sounded in recent months from frustrated investors. In late January, a Vail Resorts investor named Taylor Schmidt made waves in the ski industry when he published a scathing report on the company, calling for the resignation of Lynch and Katz.
Following Tuesday’s announcement of the leadership shuffle, Vail Resorts’ stock jumped 19 points, from $151 to $170 per share.
“Investor frustration stemmed mainly from stock underperformance, multi-years of missing guidance (or coming in at the low end), and just an overall public relations narrative that has gotten away from the company under the tenure of the departed CEO,” Scholes said.
Katz will continue to serve as the chairperson of the board, which comprises 11 directors.
“It is an honor to step back into the role of CEO of Vail Resorts, and it is a privilege to lead the incredible people who make our resorts and our Company so special,” Katz stated in the Vail Resorts release. “I remain as passionate about Vail Resorts, the sport of skiing and snowboarding, and this industry as when I first became CEO nearly two decades ago. While the environment and the company itself have changed, what remains the same is our deep-rooted commitment to all our stakeholders, including to our team members, our truly unique mountain resorts, and the communities we serve, as well as to our culture of innovation and constant improvement. I am very optimistic about the future of Vail Resorts and delivering for all our stakeholders. I want to thank Kirsten for her leadership over the past three and a half years; she has set us up for the next phase of growth, and I look forward to building upon that work.”
Letter to employees
In a letter to employees issued Tuesday, Katz said the passion of Vail Resorts’ workers has always connected him to the company.
“That passion is an incredible gift we all share, but it’s also a special responsibility,” Katz said. “The mountains, and skiing and riding, are very personal to everyone who loves them. We must honor and care for that passion, while also stewarding a strong future for our company and our industry. This is something all of you do every day, for which I have always been incredibly grateful.”
Katz said his most important goal in returning as CEO is ensuring the company aligns with all stakeholders to deliver the “experience of a lifetime,” a longtime company slogan.
“It is important to remember that aligning our stakeholders does not mean everyone will always agree with everything we do, or that our stakeholders will agree with each other,” Katz said. “And while that is not always comfortable, it is part of the responsibility of being a leader in an industry with such passionate people. And it’s one of the things I look forward to the most; taking all that energy, inside and outside our company, and translating it into growth. Growth that means more than just getting bigger, but also means evolving and improving. As strong a company as we are, with such incredible resorts and people, we can still evolve and improve.”
Written by John LaConte for Vail Daily.
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