January 19, 2010

Embattled DMA CEO Is Out, Search Announced

John A. Greco, Jr., the embattled chief at the Direct Marketing Association (DMA) is out after a board meeting in Naples, Fla., this past Thursday and Friday. The DMA has organized a search committee to identify possible candidates.

Greco was the center of an internal insurrection of DMA members that included a near proxy fight that was averted on the day that a slate of opposition candidates were going to be nominated. DMA was under fire for Greco’s compensation that according to the organization’s federal Form 990 was $838,528.

Information on the latest contract, which is one year in length after both a three-year and a two-year contract, was not immediately available.

Greco’s contract was set to run out in June. Insiders told The NonProfit Times that there were negotiations at the board meeting for his early departure. The sources would not say if he resigned or was pushed out.

“The announcement was made that we was leaving. He never even talked to the staff,” said one DMA insider.

DMA executives, speaking on the condition of anonymity, said that Greco spent too much time developing a relationship with board members and spent little time courting membership. “When one of the board members turned on him, he didn’t have the membership to fall back on for support,” said one DMA staffer familiar with the situation.

This past summer board member Gerry Pike was not re-nominated to the DMA board and blamed Greco and his team. He started a months-long proxy fight to get back on the ballot as an opposition candidate. Both sides collected proxy votes, and although neither side revealed its number of proxies, it was clear Pike was in a very strong position. A last-minute deal was brokered that put Pike back on the board, along with several other opposition candidates.

“He was a gadfly. You put him back on the board. You roll your eyes when he says something and move on. He (Greco) played it all wrong and was wounded,” said one DMA staffer.

DMA represents more than 3,100 companies from dozens of vertical industries in the U.S. and 48 other nations, including half of the Fortune 100 companies.
 
“As we enter into the new decade and are anticipating an economic resurgence, it’s more important than ever to ensure that both traditional and digital multichannel direct marketing is at the forefront of that recovery,” said Eugene Raitt, chairman of the DMA Board of Directors. “Bringing in new leadership to the management team focusing on the areas we intend to grow will be part of that process. The committee will conduct an aggressive search and I’m confident that we will find an exceptionally qualified individual to fulfill the DMA’s vision and goals.”
 
He continued, “DMA has committed to further developing the power of multichannel direct marketing for advertisers and consumers in the digital age. By continuing to develop strategies, content and thought-leadership, digital marketing principles will be fused throughout DMA; enabling us to grow membership, expand partnerships, enhance the Organization’s role within digital marketing and produce advanced thinking and educational