Don Phillips, who has been Morningstar's outspoken CEO for the past three years, has been replaced by the company's founder and chairman, Joe Mansueto. The company is also adopting a decentralized organizational structure that will divide the company into seven independent business units, said Mansueto. The move will enable the company to keep track of its sources of revenue and profits more closely, he said. Phillips will now be one of three managing directors responsible for the oversight of the new business units. Mansueto, meanwhile, will resume his day-to-day oversight of the firm, he announced last week.
His re-emergence comes at a time when Internet-based companies are beginning to be held to tighter standards by Wall Street analysts, Mansueto said. Morningstar's heavy investment in the Internet was part of the company's strategy last year, but that strategy has fallen out of favor following the Nasdaq's plunge and analysts are returning to a more "traditional business yardstick" in measuring a company's profitability, he said.