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CompanyStats

Mead Johnson Nutrition
  • HQ: Evansville, IN
  • 2008 Revenues: $2.9 billion
  • Employees: 5,300
  • Global: Over 50 countries
    • Fortune 500: N.A.

CEOExtra

A big catalyst for change at Mead Johnson occurred in February, when the company made an initial public offering of approximately 15 percent of its stock. Though CEO Stephen Golsby says he and the rest of the management team “thought long and hard” about the timing of an IPO in such a tumultuous market, they concluded that the positives outweighed the negatives. “We’re a growth company, and a global leader in our industry,” says the CEO, “and it will be easier to secure investment capital for accelerated growth and to attract and retain talent as a separate public company.” Operating as a stand-alone company, Golsby says, also enables it to underscore with employees the importance of cash-flow management and productivity.

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Stephen Golsby

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Stephen Golsby

Mead Johnson Nutrition

What are the silver linings to the global economic crisis?

Though parents “will seldom compromise the quality of the nutrition they provide for their infants and young children, we’re not immune to the economic challenges that consumers are feeling,” says Stephen Golsby, CEO of Mead Johnson Nutrition Co. (MJN), best known as the maker of the Enfamil line of infant formulas. Still, Golsby says, operating in a tough financial climate has, in fact, enabled the Chicago-based company, which generated nearly $3 billion in 2008 revenues, to underpin its strong position with customers, employees and shareholders in ways that will pay dividends for years to come. “When times are tough, it’s easier to explain to people why we have to get the most out of every dollar,” he says. “Frankly, I’ve been pleased with how much more creative people have become in finding new and better ways of doing things. We’ve been able to challenge a lot of sacred cows.”

“When times are tough, it’s easier to explain to people why we have to get the most out of every dollar.”

Golsby believes the down market has also given his company a new opportunity to create brand loyalty. “We have clinical data that shows our products support a child’s immune system and mental and visual development,” he says. “As a consequence, our products are premium-priced. But in reality, feeding Enfamil to your baby each day costs less than a latte, and that is great value when you consider the lifelong advantage to your child.”