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Jay Chiat Quits as Chairman of L.A. Ad Agency

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TIMES STAFF WRITER

Jay Chiat, the ad man who co-founded the largest and most successful agency in Los Angeles, began to relinquish the reins of his fast-growing advertising empire on Friday.

Chiat stepped down as chairman and chief executive of North American operations at Chiat/Day/Mojo and handed that title to Bob Wolf, 47, who has been president of the firm’s Venice-based operations for about two years.

Chiat, 58, remains chairman of worldwide operations for Chiat/Day/Mojo, which creates ads for Nissan, Reebok and Eveready. The move, which will free Chiat to search for European ad agency partners, has also resulted in a number of changes at the top at the ad firm’s headquarters office. The move clearly indicates how quickly the $1-billion agency has grown in recent years.

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“For the past two years we’ve been trying to transfer power to the second generation,” said Chiat, in a telephone interview from New York. “I’m confident they’ll do a much better job than I’ve done,” he said lightheartedly,

Advertising executives say that Wolf--who is regarded as a no-nonsense administrator--is clearly being rewarded for the job he has done in bringing order to the agency’s offices in both New York and Venice. For years, Chiat/Day/Mojo has been regarded as one of the world’s top creative shops, but some of its support services--such as keeping sustained relationships with clients and purchasing media time at good prices--have been criticized by some.

“We want people to know that they can not only get great creative from Chiat/Day/Mojo,” Wolf said, “but we can do a great job with the rest of it, too.”

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Some advertising executives say Jay Chiat may be laying the groundwork for his retirement. “I think it raises the question of how active Jay will remain in the business,” said Gene Cameron, a former Chiat/Day/Mojo senior executive, who is now president of the agency BBDO/Los Angeles.

Both Chiat and Wolf strongly deny that the move is any sort of prelude to Chiat’s retiring from the agency. In fact, Chiat said he has no plans to leave the firm. “Nobody’s going anywhere,” Chiat said. “I feel really good about this. Bob has been acting chief executive for the past six months.”

Under the reorganization, Wolf will continue to report to Chiat, with all other employees falling under Wolf.

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And Wolf said he isn’t certain that he’d ever be interested in Chiat’s post. “There are a lot of sacrifices that go with that job,” Wolf said in a telephone interview. “I have two young children. I don’t know if I’d want to be traveling all over the world.”

Certainly, Wolf is filling big shoes. “Charismatically speaking, Jay is a tough act to follow,” said Larry Postaer, co-founder of Rubin Postaer & Associates, which creates ads for American Honda.

But as the new head of the agency’s North American operations, Wolf said he will not forget the mission that Jay Chiat set for the agency years ago. “The priority for Chiat/Day/Mojo over the next decade is to remain the best creative agency in the world,” said Wolf, who will be replaced as president of the Los Angeles office by Bob Kuperman, who has been creative director.

Wolf said he’s long been aiming for his new post. “It’s the best job in advertising,” said Wolf, who will continue to work out of the agency’s Venice office. Wolf joined Chiat/Day/Mojo seven years ago when he was named president of the firm’s New York office. During the four years he was there, annual billings at the office jumped to $150 million from about $15 million.

Advertising industry executives generally say Wolf is the right person for the job.

“Bob Wolf has earned the next step up,” said Guy Day, who co-founded Chiat/Day/Mojo some 20 years ago and originally interviewed Wolf for his post in the firm’s New York office. “He’s done a hell of a job in New York and Los Angeles.”

Day, who has since left the firm and recently joined the agency Keye/Donna/Pearlstein, said former partner Jay Chiat has successfully made the agency bigger--and better. “Jay had an agenda to grow,” Day said, “and by God, it has worked.”

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