Inside Oakley
Executive Team Includes Newcomers, Fixtures; CEO Making Own Mark Within Cultish Culture
By Jennifer Bellantonio
Orange County Business Journal Staff
Olivet: called accessible, “progressive,” “interactive”. Jannard: sets company tone
Olivet: called accessible, “progressive,” “interactive”. Jannard: sets company tone
Richard Shields got a crash course in Oakley Inc.’s commando corporate culture in his first few months on the job.
Four guys in ski masks jumped him at his desk. Shields, the Foothill Ranch-based company’s chief financial officer, was blindfolded and handcuffed.
Then he was led through hallways to a super secret spot: a newly built microbrewery at Oakley’s 600,000-square-foot headquarters.
Chief Executive Scott Olivet, who joined in late 2005, got his own welcome.
He was at a company holiday party on a boat cruising Newport harbor when some Oakley security guards and cop friends raced up on a Zodiac.
They boarded, hooded and kidnapped Olivet and whisked him to a nearby helicopter, where he was flown to another Oakley party at The Grove in Anaheim.
Not exactly the type of stories you get from most companies, particularly ones that answer to Wall Street.
“It’s the culture that allows maverick activity,” said Colin Baden, Oakley’s president. “You don’t want to miss a day of work. It’s so different every day.”
HQ: designed by Jannard, Baden
The tone comes from the top: Founder and majority owner Jim Jannard has infused the company with an iconoclastic, rebellious bent since starting the business back in 1975.
Jannard and Baden designed Oakley’s headquarters, a gray, post-industrial fortress that mysteriously stands atop a hill in Foothill Ranch.
There are military jet jump seats in a lobby with 50-foot ceilings. Metal accents everywhere. Research labs for testing. An auditorium with steep stadium seats where shareholders usually start annual meetings by watching radical videos of athletes in Oakley shades doing extreme things.
And there’s the brewery. The company recently built it so employees can blow off some steam and brew their own beer.
The pub no doubt takes away the sting of the company’s recent conversion of an NBA basketball court into needed office space.
Oakley, a maker of glasses, goggles, clothes and shoes, has about 1,400 local workers and yearly sales of about $900 million. It had a market value of about $1.7 billion last week, with 63% in the hands of Jannard.
The company’s core executive team includes about a dozen people. There are titles, but no one’s hung up on them, according to Baden.
“It’s pretty horizontal,” he said. “Everyone is willing to pitch in regardless of what has to be done.”
Oakley’s team in-cludes relative newcomers such as Olivet and Shields, fixtures such as Baden and Jannard, and division head Sophie Bundalo and business manager Jennifer Bradley, who are playing key roles in Oakley’s bid to appeal more to women.
Jannard, known to pass around cigars at meetings, splits his time between here and an island he owns in Washington state. He turned over the chief executive hat to Olivet two years ago.
A former executive at Nike Inc. and Gap Inc., Olivet is credited with refocusing the company on sunglasses, designer glasses and gearing the decidedly macho company more to women. He’s freed up Jannard to do more of what he loves—design.
Olivet has brought a bit of big company expertise to Oakley without taking “away our brave rebellious attitude,” said Scott Bowers, vice president of worldwide marketing. “He added strategy to it.”
Jannard “is the crazy mad scientist,” Bowers said, and Olivet “can articulate” his vision well.
Olivet has put his mark on Oakley.
Last year, he led the acquisition of fashion glasses sellers Oliver Peoples of Los Angeles and Aliso Viejo-based Optical Shop of Aspen International.
Earlier this year, the company bought Idaho’s Eye Safety Systems, maker of goggles and other protective gear, and Australia’s Bright Eyes sunglass chain.
Oakley now runs about 90 stores selling sunglasses, sports goggles and upscale frames for prescription lenses.
The company, long associated with jocks, cops and other manly types, has stepped up its bid to appeal to gals with specially designed sunglasses, clothes and tweaks to stores and marketing.
The company’s rank and file have embraced the changes, according to Shields.
In the past, Oakley has been “proud to turn on a dime,” he said.
“But it’s wearing to turn on a dime every day,” Shields said. “We’re now building longer range plans.”
Olivet’s swift changes have been made without affecting parts of the culture, Shields said.
For his part, Olivet said he’s mindful of the legacy: “It’s something I think about all the time. It’s part of the fabric.”
Others call Olivet accessible, “progressive” and “interactive.”
Sophie Bundalo, who heads Oakley’s retail division, said Olivet gives her a lot of room “to take the division in the direction we need to.”
On a recent trip to Hong Kong, Olivet and other Oakley executives pitched in alongside workers from the apparel division, tweaking designs.
We “were all hemming pants and figuring out what length the shorts should be,” Olivet said. “At the end of the day, someone has to make a decision. And sometimes that decision comes from the most junior person in the group. We don’t work in a very hierarchical fashion at all.”
On any given day, Oakley’s headquarters is a beehive of activity.
Olivet is taking impromptu meetings in the hallways. Workers are coming up with ways to make better designs. Someone is usually quoting a Jannard phrase.
“Be brave.” “Punish mediocrity.” “Design matters.”
“Until you come and experience it first hand, it’s hard to describe,” Baden said. “People usually say, ‘I had no idea how fanatical you are.’”
“It’s a cult,” Bowers said. “It truly is.”
The buzz is “infectious,” Bundalo said.
“The culture is the best part of our entire company,” she said. “I didn’t think of it as a masculine organization. There’s this youth, energy, drive, excitement and sporty atmosphere around the building.”
Part of the push comes from Oakley’s sports heritage.
Athletes drop in to offer feedback about products they’ve tested. Michael Jordan once was a director.
“That creates an energy and expectation level for what we do every day,” Olivet said. “Athletes create in-credible goals for themselves and surpass what they did in the last race. That drives a bit of what we do.”
A typical Oakley worker doesn’t need much of a push. Most are proud and bold about being part of the company—and not afraid to say it.
“We are flat out the best at what we do,” Olivet said. “There’s a pride and satisfaction that comes with being the best and striving to be the best.”
Yet there is a definite casualness about the company.
Baden has been known to race his hummer in the front parking lot—even flipping it once. Some Fridays, the company orders in kegs of beer and food from Santa Ana-based Wahoo’s Fish Taco.
Shorts are common attire. Some people bring their dogs, kids or skateboards to work.
Many are barefoot and even come to the office without shoes, Shields said.
“The informality shouldn’t be misconstrued with a who cares attitude,” he said. “People aren’t dressy, but they’re competitive.”
Expectations are high, according to Shields.
“You hear that in the dialogue: ‘Either go big and go bald or shut up and stay home,’” Shields said. “People are very committed.”
Part of Oakley’s challenge is to soften its image to appeal more to women shoppers.
Oakley stores have been overhauled to be more inviting to women, Bundalo said.
“Historically, when you came into the store, men’s (clothing and sunglasses) would dominate the walls and more than half of the floor,” she said. “We’ve split it down the middle.”
Plus, Oakley has added more mirrors and lighting. Sunglasses no longer are locked in cases but on displays where people can try them on and walk around.
“That’s more important to the female customer,” Bundalo said. “They like a lot of flex in the shopping experience.”
Bradley, business unit manager for women’s glasses, said Oakley’s top brass has been supportive about listening to new ideas and moving on changes.
“You can come up with ideas and they embrace those ideas and give us an opportunity to grow the business,” she said.
The biggest challenge now is getting the word out to customers.
“We definitely see that when a consumer becomes aware they embrace the product,” Bradley said.
THE TEAM
Click here to find out more!• Jim Jannard: 57, chairman, founder, majority owner. Chairman, director since company’s 1975 inception. President from 1975 to 1999. Chief executive, 1999 to 2005.
• Scott Olivet: 44, chief executive. Joined in late 2005. From 2001 to 2005, was Nike vice president overseeing key brands, new business development. Developed, led company’s branding strategy for Cole Haan, Converse, Hurley, Starter, Bauer-Nike Hockey. Prior to Nike, served as Gap’s senior vice president of real estate, store design, construction, responsible for Gap, Banana Republic, Old Navy chains from 1998 to 2001. Worked with Bain & Co. from 1984 to 1998 as a partner.
• Colin Baden: 44, president. Joined Oakley in 1996 as director of design. Served as vice president of design from 1997 to 1999. Named president in early 1999. Prior to Oakley, was a partner at Lewis Architects of Seattle for six years. Began advising Oakley on company image, design issues in 1993.
• Richard Shields: 50, chief financial officer. Joined Oakley in 2005. Served as chief financial officer of Southwest Water from 2002 to 2005. Was financial chief at Day Software from 2001 to 2002, Winfire from 1999 to 2001, Frame-N-Lens Optical from 1996 to 1999. Earlier served as international controller, finance director for Americas at former Irvine computer maker AST Research. Worked in corporate finance with Taco Bell. Began his career in 1982 at Price waterhouse.
• Link Newcomb: 45, senior adviser to CEO. Joined Oakley in 1994 as vice president, international sales. Executive vice president, 1995 to early 1997. Chief financial officer from 1995 to early 1997. Chief operating officer in 1997. Chief executive 1997 to 1999. Chief operating officer again, 1999 to 2005, when he became senior adviser to Olivet. Prior to Oakley, was lawyer with Skadden, Arps, Slate, Meagher & Flom in Los Angeles.
• Jon Krause: 43, senior vice president, operations. Joined Oakley in 1996 as director of information technology. Named operations vice president in 1998. Senior vice president of operations in 2005. Prior to Oakley, was senior manager with Andersen Consulting, now Accenture.
• Kent Lane: 53, senior vice president, manufacturing. Joined Oakley in 1994. Director of manufacturing in 1995, later vice president of manufacturing. In 2005, named senior vice president of manufacturing, sourcing. Earlier worked for Kaiser Steel, Water Factory Systems.
• Scott Bowers: 45, vice president of marketing worldwide. Joined in 1988 as a regional sales manager. Director of sports marketing from 1995 to 1999. Vice president of sports marketing, 2000 to 2003. Vice president of marketing worldwide in 2004. Prior to Oakley, worked in snow and ski industry.
• Donna Gordon: 47, vice president, finance since 1995. Joined Oakley in 1986. Has held a number of positions, including controller, corporate secretary.
• Cos Lykos: 38, vice president, business development since joining in 2004. Named corporate secretary in 2006. Prior to Oakley, was vice president of business affairs, general counsel, secretary at RemedyTemp. Before that, corporate associate at Gibson, Dunn & Crutcher LLP specializing in mergers and acquisitions, public offerings, licensing and general corporate matters.
• Cliff Neill: 47, vice president, U.S. sales, since 2002. Joined in 1985, has held various sales positions.
• Carlos Reyes: 40, vice president, research and development, since 1995. Joined in 1989, has held various positions, starting as lens coating assistant in manufacturing. Lens coating manager in 1991, took leadership position in design department in 1993.
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