Reader’s Digest Association Inc. said Monday that James Schadt quit as chairman and chief executive, after his moves to expand beyond magazine and book publishing backfired.
Retired Chairman George Grune, 68, will head Reader’s Digest until a successor for Schadt, 59, is found. Grune led the publisher through a decade of growth in the 1980s.
Schadt’s exit after three years shows the company hasn’t figured out how to attract customers beyond the older audience for its Reader’s Digest magazine and books.
While Schadt had expanded into areas such as TV, videos and software, it cost a lot and dragged down profits.
The stock rose $3.37 Monday, to $28.25. The company’s shares have fallen 39 percent since Schadt became CEO on Aug. 1, 1994, as the S&P 500-stock index more than doubled.
