3M names a new second in command

3M Co. Monday appeared to answer the question of who will succeed CEO George Buckley, elevating Inge Thulin to a newly created position of chief operating officer.

The other part of the question -- when -- is still up in the air.

Buckley, who joined 3M as CEO in 2005, is scheduled to step down next February when his contract expires and he turns 65, 3M's mandatory retirement age for executives.

But at last week's annual meeting Buckley didn't sound like someone ready to leave as he outlined the company's growth plans. After the meeting Buckley said that he still loves his job and that the matter of changing the rule so he could remain CEO is up to the board.

One analyst said Thulin's appointment sets the stage for him to succeed Buckley within the next year as CEO but have Buckley retain his position as chairman.

But another analyst said Buckley has said privately that he wants to stay actively involved in management, and that if he cannot do it at 3M he'll look for an opportunity at another company.

Shareholders at the annual meeting weren't able to ask questions about Thulin's appointment because it wasn't announced until Monday, even though it was effective May 1. The company also did not make either Buckley or Thulin available for interviews Monday.

In his new job Thulin, 57, will oversee the company's six business segments and international operations. He's been executive vice president of international operations since 2003. Under his leadership, international sales have grown from $10.7 billion to $17.5 billion -- about two-thirds of 2010's total sales of $26.7 billion.

"He's clearly been put in the position as the frontrunner," said Jeff Windau, analyst at Edward Jones in St. Louis. He said the appointment gives 3M the chance to further assess Thulin's abilities and management style before settling on a successor to Buckley.

Thulin was one of three 3M executives whose names cropped up last December as possible successors to Buckley in news reports that said Buckley wanted to step down ahead of his contract. The company said those reports, which cited unnamed sources, were factually incorrect, and Buckley subsequently said he had no desire to retire early.

Thulin was 3M's third-highest-paid executive last year, earning about $1.4 million in cash compensation. He first joined 3M in his native Sweden in 1979 and spent most of his career there and in Europe. He's been based in Maplewood since being named head of international operations, although he travels frequently. Company spokeswoman Donna Fleming Runyon said it isn't known yet how Thulin will divide his time under his new job.

Thulin's appointment is the latest executive shuffle in 3M's top ranks. Three executives have retired in the last few months: Jean Lobey, executive vice president of the safety, security and protection services business; Robert MacDonald, senior vice president for marketing and sales; and Patrick Campbell, senior vice president and chief financial officer. Successors to all three have been named; Thulin will continue his responsibilities with international operations for now, Runyon said.

"They have a deep bench," said Mariann Montagne, an analyst and portfolio manager at Marks Group Wealth Management in Minnetonka, noting that the company has filled all its recent top management openings from within.

3M stock closed at $95.46 a share Monday, down 55 cents.