Safeguard Scientifics, Inc. (NYSE: SFE) announced a series of management changes intended to streamline the Company's organizational structure and reduce operating costs. These aggressive cost-reduction initiatives are intended to better align Safeguard's cost structure with the strategy the Company announced in January 2018 to reduce its operating costs, monetize its Partner Company interests and maximize the net proceeds distributable to Safeguard's shareholders.

Stephen T. Zarrilli, who has served as Safeguard's President and Chief Executive Officer since November 2012, will retire from Safeguard, effective September 30, 2018. Safeguard's Board of Directors has appointed Brian J. Sisko to succeed Mr. Zarrilli as President and CEO, effective July 1, 2018. Mr. Sisko joined Safeguard as Senior Vice President and General Counsel in August 2007, and currently serves as Executive Vice President, Chief Operating Officer and Managing Director of Safeguard. Mr. Zarrilli will remain with the Company as a non-executive employee until September 30, 2018 to ensure a smooth transition. He will continue to serve on the Safeguard Board until the 2018 Annual Meeting, but will not stand for re-election.

Dr. Robert J. Rosenthal, Chairman of the Safeguard Board, said, "Our Board is extremely grateful to Steve for his many years of strong and dedicated leadership. He is an extremely talented professional who has led this company with skill and vision. Under Steve's leadership, and with his strong insights, judgment, sharp business acumen and ability to execute, Safeguard has achieved many key noteworthy milestones, including: the repayment of $110 million of convertible debentures, the monetization of more than $900 million of investments, the deployment of more than $600 millioninto new Partner Companies, the first ever return of capital to shareholders and some of the largest exits in Safeguard's recent history. We applaud Steve's many accomplishments and contributions to Safeguard, and are also very pleased that Steve will remain with us through September to ensure a smooth transition."

In addition, Safeguard's current Senior Vice President and Chief Financial Officer, Jeffrey McGroarty, will depart from the Company, effective June 30, 2018; and Senior Vice President of Investor Relations and Corporate Communications, John Shave, will depart thereafter at a specific date yet to be determined. David Kille, Safeguard's Corporate Controller, will assume the role of Safeguard's Chief Financial Officer, effective June 1, 2018. Dr. Gary Kurtzman, Senior Vice President and Managing Director, Healthcare remains in his role and will work closely with Mr. Sisko in providing oversight of the Partner Companies. Following these organizational changes, Safeguard does not intend to fill the roles of Chief Operating Officer, Senior Vice President of Investor Relations and Corporate Communications or Corporate Controller, and these roles will either be eliminated or will be combined with other roles.

Dr. Rosenthal continued, "We thank Jeff and John for their more than 10 years of dedicated service to Safeguard and countless valuable contributions to our company. Through their efforts, Safeguard has accomplished many objectives that have benefited the organization and its shareholders with respect to financial stewardship, proactive and substantial shareholder communication and education, and support of our Partner Companies."

With the organizational changes announced today, along with the aggressive cost reduction initiatives previously announced and implemented, Safeguard currently projects that its ongoing annualized operating expenses excluding interest, depreciation, severance and stock-based compensation, will approximate $8 to 9 million, in comparison to approximately $15 million for 2017.

"I believe Safeguard is on the right path to maximize the distributions of capital to our shareholders," said Mr. Zarrilli. "With Safeguard's new strategy well underway, the Board and I felt it was important to substantially reduce our management and make further cost reductions to align our organization and expense base with our new strategy. I am very confident in Brian's ability to lead Safeguard as it focuses on monetizing its assets and returning capital to shareholders. I look forward to working closely with him in the coming months to ensure a smooth leadership transition."

"I am honored to have the opportunity to serve as Safeguard's next CEO and lead the Company in executing our new strategy," said Mr. Sisko.

Dr. Rosenthal concluded, "With today's announcement, the Safeguard Board makes clear its commitment to executing on the Company's new strategy and creating a leaner and more agile organization focused on maximizing the capital that is available for distribution to shareholders. We are also confident that Brian Sisko's mergers and acquisitions, corporate finance and legal backgrounds, as well as his operating experience and extensive knowledge of and familiarity with Safeguard's Partner Companies make him the ideal choice to lead the organization as it pursues this strategy."

About Safeguard Scientifics 

Historically, Safeguard Scientifics (NYSE:SFE) has provided capital and relevant expertise to fuel the growth of technology-driven businesses. Safeguard has a distinguished track record of fostering innovation and building market leaders that spans more than six decades. For more information, please visit www.safeguard.com or follow us on Twitter @safeguard.