8-K: Wiley Appoints Matthew Kissner as President and CEO After Successful Interim Period

Matthew Kissner has been appointed as the permanent President and CEO of John Wiley & Sons, Inc., effective July 8, 2024, following a successful period as interim CEO.

Summary

• John Wiley & Sons, Inc. has officially appointed Matthew S. Kissner as President and Chief Executive Officer, effective July 8, 2024.
• Kissner previously served as interim President and CEO since October 10, 2023, and has a long history with the company, including prior roles as a Group Executive and Board Chair.
• His employment agreement includes an annual base salary of $900,000, eligibility for a 150% target annual incentive, and a $3 million long-term incentive award.
• The long-term incentive will be paid as 60% performance stock units and 40% restricted stock units, which will continue to vest upon the transition to the next CEO.
• Kissner will not be eligible for severance pay under any company program during or after his tenure as CEO.
• Wiley exceeded its Fiscal 2024 earnings guidance and delivered revenue at the higher end of its range.
• The company is targeting revenue, profit, and free cash flow growth in Fiscal 2025 and Fiscal 2026.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the appointment of a permanent CEO with a strong track record, exceeding earnings guidance, and positive future growth targets. The lack of severance for the CEO is a minor negative, but overall the tone is optimistic.

Positives

• The appointment of a permanent CEO provides stability and direction for the company.
• Matthew Kissner has a deep understanding of Wiley's business, markets, and operations due to his extensive history with the company.
• Wiley exceeded its Fiscal 2024 earnings guidance and delivered revenue at the higher end of its range, indicating strong recent performance.
• The company is targeting growth in revenue, profit, and free cash flow for Fiscal 2025 and Fiscal 2026.
• Kissner's leadership has already shown positive results during his interim period, including the execution of two GenAI content rights projects.

Negatives

• Matthew Kissner will not be eligible for severance pay under any company program during or after his tenure as CEO.

Risks

• The company's future performance is dependent on achieving its targeted growth in revenue, profit, and free cash flow for Fiscal 2025 and Fiscal 2026.
• The success of the company's GenAI content rights projects and other initiatives will be crucial for future growth.

Future Outlook

The company is targeting revenue, profit, and free cash flow growth in Fiscal 2025 and Fiscal 2026, driven by business momentum and accelerated cost savings.

Management Comments

• Jesse Wiley, chair of the board, stated that Matt Kissner has made great progress improving the organization and driving momentum.
• Jesse Wiley believes Matt is the right person to lead Wiley through the next phase as a knowledge solutions company.
• Matt Kissner stated he is honored by the Board's trust and that the company's markets are trending favorably, financials are strong, and culture is reinvigorated.

Industry Context

This announcement comes as the publishing industry is undergoing significant changes, with a focus on digital transformation and the integration of AI technologies. Wiley's appointment of a CEO with a strong background in both traditional publishing and digital innovation positions them to navigate these changes effectively.

Comparison to Industry Standards

• Wiley's appointment of a seasoned executive like Matthew Kissner is consistent with industry practices for large publishing companies.
• The compensation package, including base salary, incentives, and long-term awards, is comparable to those of CEOs at similar-sized public companies in the publishing and education sectors.
• Wiley's focus on digital transformation and AI integration aligns with the strategic priorities of other major players in the industry, such as Pearson and RELX.
• The company's stated goals for revenue, profit, and free cash flow growth are in line with the expectations for established publishers seeking to adapt to the changing market.

Management Changes

Stakeholder Impact

• Shareholders are likely to view the appointment of a permanent CEO and the company's positive financial performance favorably.
• Employees may feel more secure with a permanent leader and the company's positive outlook.
• Customers and partners can expect continued service and innovation from the company.
• The company's focus on growth and innovation should benefit all stakeholders.

Next Steps

• Matthew Kissner will lead the company in its next phase as a knowledge solutions company.
• The company will focus on achieving its targeted revenue, profit, and free cash flow growth in Fiscal 2025 and Fiscal 2026.
• Wiley will continue to develop and implement its GenAI content rights projects.

Key Dates

Keywords

CEO, Matthew Kissner, John Wiley & Sons, Executive Appointment, Leadership, Financial Performance, Incentive Plan, GenAI, Revenue Growth, Profit Growth