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New AOL CEO restructures management once again, creates chief marketing officer position
Sunday, December 24, 2006

NEW YORK -- AOL's chief executive announced yet another restructuring of the online company's corporate structure, creating a senior position to market its brand while naming several executives who will report to a newly appointed deputy.

Randy Falco, recently hired from NBC as AOL LLC's chairman and chief executive, acknowledged in a memo to employees that much work remained "in such crucial areas as our speed to market and innovating new products."

Although AOL once was the dominant Internet brand, the company has seen its paying subscribers leave for free offerings from Yahoo Inc., Google Inc. and Microsoft Corp.'s MSN. AOL decided in August to give away AOL.com e-mail addresses and other services, but only after millions already had already defected.

The executive changes follow the surprise hiring in November of Mr. Falco, pushing out Jonathan Miller. AOL parent Time Warner Inc. soon named its senior vice president of operations, Ron Grant, as AOL's president and chief operating officer, a new position.

In the wake of the changes, Joe Redling, chairman and chief executive of AOL International, Jim Bankoff, executive vice president for consumer and publisher services, and John Buckley, executive vice president for corporate communications, opted to leave.

Tricia Primrose Wallace was named Monday to replace Mr. Buckley, and Mr. Bankoff's duties will go to Kevin Conroy, head of products, and Bill Wilson, head of AOL programming. Mr. Redling's replacement has yet to be named.

Mr. Falco did not say when he would fill the newly created position of chief marketing officer.

In the reorganization, most of the operational executives, including Conroy and advertising chief Michael Kelly, will report to Grant instead of directly to the CEO.

"It's our desire to instill greater focus on execution," Mr. Falco wrote. "We believe there can be more clarity and accountability built into the organization."

AOL has been trying to lure back former customers, along with new ones, with video services and social-networking offerings through its popular instant-messaging platform.

Only two months before his departure, Mr. Miller had reorganized the senior leadership to reflect AOL's stronger focus on trying to drive traffic to its free, ad-supported Web sites.

First published on December 24, 2006 at 12:00 am
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