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ADMINISTAFF ANNOUNCES MANAGEMENT CHANGES
  • New Development Team to focus on eCommerce, technology solutions, and enterprise-wide initiatives
  • Douglas Sharp named vice president of finance and controller

HOUSTON – Feb. 18, 2000 – Administaff, Inc. (NYSE: ASF), a leading Professional Employer Organization (PEO), today announced the formation of the Development Team, an operating group that will be responsible for the company’s eCommerce development, technology solutions, and new enterprise-wide initiatives. The new group is comprised of two existing departments – eCommerce Development and Technology Solutions – and the addition of a new department, Enterprise Project Management.

"Our new Development Team will facilitate our pursuit of new initiatives and innovations that will keep Administaff at the forefront of the business services sector," said Paul J. Sarvadi, Administaff president and chief executive officer. "Organizing in this fashion will improve our speed to market on new products and services, and will enhance the development of enterprise-wide initiatives at the lowest possible cost."

The Development Team will include the following:

  • eCommerce Development, an existing department headed by Vice President Randall H. McCollum, will continue to develop relationships with best-of-class providers of products and services to small businesses;
  • Technology Solutions, a new department headed by Vice President David C. Dickson, will plan, develop, implement and manage technology solutions. Dickson also will continue to serve as the company’s chief technology officer.
  • Enterprise Project Management, a new department headed by Vice President Samuel G. Larson, will coordinate the selection, prioritization and implementation of enterprise-wide improvements and new initiatives. Larson formerly served as the company’s vice president of finance and controller.

Concurrent with Larson’s new role, Administaff announced that Douglas S. Sharp has joined the company as vice president of finance and controller.

"Doug Sharp brings a wealth of valuable experience to our financial team," said Richard G. Rawson, Administaff’s executive vice president of administration and chief financial officer. "He also has extensive knowledge and understanding of high-growth business ventures, which makes him a perfect fit with our organization."

Before joining Administaff, Sharp was chief financial officer of Rimkus Consulting Group, Inc. and IISYS, Inc., a national forensic engineering firm and software company. Previously, he served as controller of Fifth Generation Systems, Inc. Sharp began his career in public accounting with Ernst and Young, L.L.P. in Houston. He earned a bachelor’s degree in accounting from Louisiana State University and is a certified public accountant.

Administaff also announced the retirement of James E. Wilkes as vice president of corporate human resources. A search to fill that position is underway.

With 1999 revenues of $2.3 billion, Administaff is a leading provider of personnel management services for small and medium-sized businesses throughout the United States. The company’s comprehensive Personnel Management System includes employment administration, benefits management, government compliance, recruiting and selection, employer liability management, training and development, performance management and owner support. Administaff ranks number 765 on the Fortune 1000 list and is included for the second consecutive year on Fortune’s list of "America’s Most Admired Companies." The company also ranks number 83 on the InformationWeek 500 list of leading information technology innovators. Administaff currently has 25 sales offices in 15 major markets. For additional information, visit the company's web site at www.administaff.com.

(Note: The statements contained in this press release that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Therefore, the actual results of future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: (i) regulatory and tax developments; (ii) changes in Administaff’s direct costs and operating expenses; (iii) the effectiveness of Administaff’s sales and marketing efforts, including its marketing agreement with American Express, American Express’ ability to set qualified appointments and Administaff’s ability to convert those appointments into sales; (iv) the estimated costs and effectiveness of capital projects and investments in technology and infrastructure; (v) Administaff’s ability to effectively implement its eBusiness strategy, including identifying and reaching agreements with strategic alliance partners, timely rollout of and attraction of clients and worksite employees to its eCommerce portal, effective generation of revenues from eBusiness initiatives and unanticipated development costs of eBusiness initiatives; and (vi) changes in the competitive environments in the PEO industry. These factors are described in further detail in Administaff’s filings with the Securities and Exchange Commission.)