America Online overhauls its management

NEW YORK (AP) _ AOL Time Warner Inc.'s America Online division announced a management shake-up aimed at helping the troubled Internet service compete better. <br><br>The changes, which restore AOL

Thursday, September 12th 2002, 12:00 am

By: News On 6

NEW YORK (AP) _ AOL Time Warner Inc.'s America Online division announced a management shake-up aimed at helping the troubled Internet service compete better.

The changes, which restore AOL veteran Ted Leonsis to a more prominent position and replace the division's chief marketing officer, are intended to give newly appointed AOL chief executive and chairman Jon Miller a more direct say in brand, marketing and technology issues.

``AOL must maintain its leadership position among dial-up subscribers, enhance our broadband business, and reinvigorate our relationship with marketers,'' Miller said in a statement Thursday.

AOL, the world's largest Internet access provider, has more than 34 million subscribers.

In midday trading Thursday, AOL Time Warner fell 39 cents to $12.86 on the New York Stock Exchange.

Under the new structure, executive vice president and chief financial officer Joseph Ripp becomes a vice chairman with responsibilities including network infrastructure and technology operations.

Leonsis, who is already a vice chairman, will oversee new councils on brand, product and technology strategy.

Current chief operating officer J. Michael Kelly becomes chairman and chief executive of AOL International. AOL Interactive Services president James de Castro will work on a Senior Strategy Council with Ripp, Leonsis, Miller and Don Logan, chairman of AOL Time Warner's media and communications group.

Ray Ogelthorpe, the current president of America Online, will retire and become a senior adviser to the company. Jan Brand, previously vice chair and chief marketing officer, becomes a part-time adviser.

The positions of chief operating officer and president are being eliminated.

Miller, who took the division's top job last month, had been expected to make significant changes. In addition to slumping revenues and doubts about its strategy, America Online has also come under pressure from a federal investigation into its accounting practices. As a result, AOL Time Warner's stock price has been hovering at its lowest levels ever.