Jackson Hewitt Tax Service taps former H&R Block CEO
Mr. Buckley succeeds Michael C. Yerington, who is leaving the company. Mr. Buckley will also join the Jackson Hewitt board as a director. Margaret Richardson, a former Commissioner of Internal Revenue who joined the Jackson Hewitt board in June 2004, will continue to serve as non-executive chair of the board.
On behalf of the board, Ms. Richardson said, “We are delighted that Harry Buckley, who is a seasoned tax preparation industry leader with a superior record of delivering value and who has strong credibility among our franchisees, has agreed to lead Jackson Hewitt forward as it develops and implements plans to enhance the value of the company for our shareholders, customers, employees, franchisees, and other constituencies.”
Other actions the board has taken in recent months include:
* The engagement of one of the world’s preeminent management consulting firms to assist in accelerating the turnaround of the company’s performance.
* The engagement of financial advisor Goldman, Sachs & Co. to assist the board in examining a range of strategic and financial alternatives for the company.
* The decision to have the board’s Governance Committee review the size and composition of the board, including a review of qualified candidates suggested by the company’s shareholders. And,
* The decision to recommend the redemption of the company’s shareholder rights plan in a vote at the company’s 2009 annual shareholders’ meeting.
“The Jackson Hewitt board has been working with a sense of great urgency to address the company’s performance,” Ms. Richardson said. “We have engaged a management consulting firm to assist the board in its evaluation of how best to accelerate the turnaround of the company’s performance. That work is well underway, which will help enable our new CEO to ‘hit the ground running’ in implementing performance-enhancing initiatives.
“While we recognize the challenges of executing any kind of transaction in the current environment, the board has also engaged Goldman Sachs to examine a range of strategic alternatives for Jackson Hewitt. The board will continue to explore all available means of enhancing value for our shareholders as we work closely with Harry and his management team to improve the company’s operational and financial performance.”
She concluded, “The activities undertaken by the board are being informed by our ongoing conversations with shareholders on the company’s strategic direction, performance and corporate governance matters.”
Mr. Buckley, 64, served as president and chief executive officer of H&R Block Tax Services, Inc., the world’s largest tax preparation service, from 1988 to 1995. He joined H&R Block in 1968 as a tax preparer and subsequently served in a variety of operational and marketing roles. In January 1997, he joined the Jackson Hewitt board, where he played an instrumental role in the sale of the company to Cendant Corporation in January 1998. In November 1998, he became chairman of a major Jackson Hewitt franchisee, Tax Services of America, and also became a consultant to the company. He retired in 2002.
Mr. Buckley said, “Jackson Hewitt has many strengths on which to build, including outstanding people, a well-established brand, committed franchisees, and a top-tier distribution network. I look forward to working closely with our board, employees and franchisees as we focus on achieving stronger performance going forward.”
[/private]Jackson Hewitt Tax Service Inc. (NYSE: JTX), with approximately 6,600 franchised and company-owned offices throughout the United States during the 2009 tax season, is an industry leader providing full service individual federal and state income tax return preparation. Most offices are independently owned and operated. Jackson Hewitt is based in Parsippany, New Jersey.