April 24 (Bloomberg) -- Resources Connection Inc., a former consulting unit of Deloitte & Touche LLP, said its chief operating officer, Tony Cherbak, will become chief executive officer on May 28 as part of a planned succession.
Cherbak, 58, will replace founder and CEO Don Murray, 65, who will continue as executive chairman, the Irvine, California, company said today in a statement.
“It’s a good time to do the transition as we’re getting through this continuing recession,” Murray said in a telephone interview.
The company has faced more competition in recent years from large accounting companies returning to the consulting business, Murray said. At the same time, large corporations have reduced their use of outside experts. Revenue increased 4.8 percent to $571.8 million the fiscal year ended last May.
Resources Connection began as a unit of the Deloitte accounting firm and was purchased by Murray and others in April 1999, according to filings. Sales soared almost sevenfold to $840 million in fiscal 2008 from $126 million in 2000, the year the company went public, before declining. Resources Connection purchased Sitrick & Co. public relations in 2009.
The company is seeking acquisitions, along with clients at smaller businesses, targeting new markets, such as health care, Cherbak said in a telephone interview. The company plans a television and radio campaign to boost public awareness, said Cherbak, who joined Resources Connection in 2005 from Deloitte.
Resources Connection rose 0.8 percent to $10.95 yesterday in New York. The stock has declined 8.2 percent this year, compared with a 9 percent gain for the S&P 600 Smallcap Index.
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