CEO OF THE WEEK: Jul 11, 2003 Glenn Epstein Intermagnetics General, Chairman & CEO
Glenn Epstein runs a company that makes superconducting magnets used in magnetic resonance imaging (MRI) machines. Intermagnetics is one of the three companies in the world that makes this type of magnets. Since Epstein took office in June of 1999, the company has doubled its revenue and dramatically improved profitability. It resulted in the company's market capitalization increasing from less than $100 million to greater than $300 million.
Glenn Epstein: Bio and Career Highlights Age: 45
Education: He received his M.B.A. from the University of Vermont, and subsequently completed the management program of the Institute European d'Administration des Affaires in Fontainbleau, France.
Resume: Began his engineering career in 1981 at General Electric, where he completed a curriculum under GE's well-known manufacturing management program. Right before joining Intermagnetics, Epstein was with Oxford Instruments. His most recent positions at Oxford included vice president of Oxford's superconducting materials division and president of its analytical instruments division.
Corporate Culture Board of Directors: The Board is currently composed of seven members. Excluding Epstein, all six other board members are independent.
Stock options: The company's board of directors got rid of stock options with restricted stock units that convert to shares when profit targets are reached. If earnings-per-share growth hits 15 percent by end of 2007, approximately 15-to-20 of its senior managers will split a pot of 700,000 shares worth more than $11 million at current market prices. If earnings growth doesn't reach at least 8 percent, they won't get anything.
What I am most proud of
Says Epstein: "Our market has grown fairly consistently in the 10 percent range for many years." That consistent growth has resulted in four years of record earnings and revenue for Intermagnetics and a balance sheet with no debt and $80 million in cash.
The Department of Energy has awarded Intermagnetics this week a $13 million contract for a project in Albany, N.Y., involving power transmission using superconductors.