(10/12/2000) -- Charles F. Knight, chairman and chief executive officer of Emerson Electric Co. (NYSE: EMR), announced that David N. Farr, senior executive vice president and chief operating officer, has been elected chief executive officer of Emerson and appointed to the company's board of directors. Knight, who is stepping down as CEO after 27 years in that position, will continue to serve as chairman.

Knight also announced the formation of a new Office of the Chief Executive (OCE) consisting of Farr; James G. Berges, president; Charles A. Peters, who was promoted to senior executive vice president and e-business leader for Emerson; and Walter J. Galvin, executive vice president and chief financial officer. Peters and Galvin were also appointed directors. Berges was elected to the board in 1997. The announcements are effective today.

"This is the perfect time to make this management transition for several reasons," Knight said. "First, we have just completed a strong fiscal 2000, and based on our current outlook, we have good momentum entering fiscal 2001. "Second, our organization is as strong as it has ever been, and the board's succession process over the past three years has ensured that we have a young yet experienced management team in place to lead Emerson forward. The four members of the Office of the Chief Executive, along with the company's six most senior operating executives, have a total of 216 years experience with Emerson.

"And third, the success of our internal growth initiatives, which began five years ago, combined with our more recent repositioning, have strengthened the company and doubled Emerson's underlying sales growth rate. Our profitability is among the highest in our industries, and our businesses are recognized worldwide for technology and engineering leadership." Knight continued, "My predecessor and I had a great relationship, and he mentored me and helped me grow into the role of CEO. David and I also have a great relationship, and I will stay involved to provide counsel to him and his team to assure the consistency and continuity in performance that have been our hallmarks. This transition will be seamless, with the clear understanding that David and the OCE have full responsibility for managing the company." Commenting on the selection of Farr, who is 45, Knight said, "David is an outstanding executive who understands Emerson and its markets well. In the 19 years since he joined the company, and most recently in several senior positions, he has clearly demonstrated the characteristics necessary to become CEO. David is also a leader with the commitment and energy needed to manage a global corporation. He has the strong support of the directors and our organization, and I am delighted with his selection to lead Emerson. "Jim Berges, Charlie Peters and Walter Galvin, working with David in the Office of the Chief Executive, comprise an executive group that is second to none. Each brings significant complementary strengths to their new roles," said Knight, who is 64.

Farr said, "I am grateful to Emerson's board and to Chuck for their confidence in my abilities, and I am fortunate to have Jim, Charlie and Walter as partners in the process of managing this major corporation. We will continue the repositioning and emphasis on major growth initiatives, which create dynamic new market opportunities. Because our entire management team has been deeply involved in Emerson's important initiatives, we do not foresee any major changes in the company's strategy."

Knight, 64, joined Emerson in 1972 as vice chairman, and became CEO in 1973 and chairman in 1974. In his 27 years as CEO, Emerson has evolved into one of the leading technology-based global manufacturing companies. During his tenure, the company's sales rose more than 16-fold, to over $15 billion in fiscal 2000, and net earnings increased 18-fold, to over $1.4 billion.

Emerson's record of increased earnings per share and dividends for each of the 27 years of Knight's term as CEO is among the longest for consistent performance in U.S. business. During this period, total return to stockholders averaged 15 percent per year.

Farr, 45, joined Emerson in 1981 in a corporate staff position. He subsequently served as manager of investor relations, vice president of corporate planning and development, president of the Ridge Tool subsidiary, group vice president for the industrial components and equipment business, president of Emerson Electric Asia-Pacific, and chief executive officer of Emerson's Astec joint venture. In 1997 he became executive vice president with responsibility for Emerson's process control business. In 1999 he was named senior executive vice president and chief operating officer. Farr holds a bachelor of science degree in chemistry from Wake Forest University and a master's degree in business administration from Vanderbilt University. Berges, 53, joined Emerson in 1976 as director of manufacturing planning. He has served as president of Emerson Specialty Motors, group vice president and executive vice president. He was named vice chairman and a director in 1997, and president in 1999, assuming responsibility for all corporate development activities, including mergers and acquisitions, planning, technology, international, service, and information systems. Berges earned a bachelor's degree in electrical engineering from the University of Notre Dame. Peters, 45, joined Emerson in 1978 in corporate planning, and later served as director of strategic planning for Skil power tools and president of the Harris Calorific division. He subsequently served as vice president of strategic planning, vice president of development and technology and senior vice president. In 1999, he took responsibility for the company's industrial components and electronics business, and earlier this year he was promoted to executive vice president with responsibility for e-business and integrated marketing. Peters earned a bachelor's degree in mechanical engineering from Cornell University, and a master's degree in business administration from Harvard University.

Galvin, 53, joined Emerson in 1973. He has served as controller at the Ridge Tool subsidiary, assistant vice president of investor relations and executive vice president of finance and administration at the U.S. Electrical Motors division. He has also served as corporate vice president of financial analysis and systems, senior vice president and controller. Galvin was named chief financial officer in 1993, and was promoted to executive vice president earlier this year. He holds a bachelor of science degree in electrical engineering from Rensselaer Polytechnic Institute and master's degree in business administration from Cornell University.

St. Louis-based Emerson (www.emersonelectric.com) is a global leader in providing customers with innovative technologies and solutions. Sales in fiscal 1999 were $14.3 billion across five business segments: electronics and telecommunications; process control; industrial automation; heating, ventilating and air conditioning; and appliance and tools. Through its Emerson Network Power companies, Emerson is serving network-dependent data, telecommunications and Internet-related businesses with a full spectrum of reliable power and connectivity solutions.