Sara Lee CEO Brenda Barnes speaks at the Chicago Network luncheon in April 2007. (Tribune file photo)

By Michael Oneal | Sara Lee Corp. Chairman Brenda Barnes broke the silence about her
medical condition Monday morning, issuing a statement that she is
recovering from a stroke.

“I know there has been a lot of speculation on my condition, so I want
to take the opportunity to provide some details,” Barnes, 56, said in a
statement. “I suffered a stroke a few weeks ago, and I am now in the
process of recuperating.”

Jon Harris, a Sara Lee spokesman, said Barnes and the company would
provide no further details on her condition or the severity of the
stroke. He said the company plans to provide an update on Barnes’ health
and her future plans by or before its end-of-year earnings call on Aug.
12. Whether she returns and assumes her full scope of duties with the
company has not been determined, he added.

“It’s Brenda’s and the board’s decision,” Harris said, noting “these things can have a long recovery period. We’re just pleased she’s on the mend.”

Sara Lee announced on May 14 that Barnes had taken ill but made no other statement out of respect for her privacy. Even within the company there has been little information on the severity of her condition, one source said.

In her absence, the company’s board  named Marcel Smits, executive vice president and chief financial officer, as interim CEO, and James S. Crown, lead independent director, assumed the role of chairman. The company also formed an Office of the Chairman comprised of Crown, Smits and C.J. Fraleigh, chief executive officer of North American Retail and Foodservice.

This is not the first time Barnes has been stricken ill with problems related to her circulatory system. In October 2006, the company said she would miss Sara Lee’s annual meeting with what the company said was “a fairly common circulatory issue.” Crown led the meeting as Barnes underwent a battery of tests to determine the proper treatment plan. The company was not more specific about the problem then and it is not clear if it is related to her current condition.

A stroke occurs when a blood vessel in the brain gets clogged or bursts, starving brain tissue of blood and oxygen. Richard Bernstein MD Phd., a stroke neurologist at Northwestern Memorial Hospital in Chicago, said the occurrence of strokes is highest in people over age 65. It is not rare for a 56 year old like Barnes to suffer a stroke, he said, but much more unusual than people in the older group.

Women in general suffer strokes more often than men. According to the National Stroke Association, 425,000 women and 370,000 men suffer strokes each year.

While warning that he could not comment specifically on Barnes’ case since he had no details, he said that statistically, her age was a benefit in terms recovery since younger people tend to have a better prognosis in terms of the degree of healing they can expect.

The majority of stroke victims are left with some sort of deficit like a shaky hand or cognitive difficulties, Bernstein said, noting that the majority also suffer some sort of disability related to those deficits, like difficulty writing. Most physical healing occurs in the first three to six months and continues for the first year. After that, he said, a disability can improve, but largely because the stroke sufferer has learned how to compensate, not because of actual physical recovery.

Barnes joined Sara Lee as president and chief operating officer in July 2004 and became CEO in February 2005. She put in place a multiyear turnaround plan to boost revenues and profit margins.

Under her watch, the company has divested a number of business lines in the last several years. It also has launched a major stock buyback program this year that will total about $1 billion and between $2.5 billion and $3 billion over three years.

The company’s shares, which have been going sideways since Sara Lee announced Barnes’ temporary departure from the helm, rose about 2 percent in early trading Monday to almost $15 a share. Sara Lee stock is up around 65 percent over the past year, well outpacing the close to 20 percent return of the S&P 500 index.

When Sara Lee announced Barnes’ medical leave, Timothy Ramey, an analyst at D.A. Davidson, said he credited her for having “gotten this company on track.” He chose not to comment Monday.

“I’m pleased to see how effectively our interim team is performing in executing our ongoing strategy and moving the company forward during my absence,” said Barnes. “I’m fully confident in this team and grateful for their expertise and leadership during this time, and also want to thank everyone for their thoughts and support during my absence. It’s truly appreciated.”

“We’re pleased to know that Brenda is on the mend and we wish her a speedy recovery,” said Crown. “On behalf of the entire board of directors, I’d like to thank the dedicated senior leaders at Sara Lee who continue to do an excellent job in Brenda’s absence.”

Barnes joined Sara Lee as president and chief operating officer in July 2004 and became CEO in February 2005. She put in place a multiyear turnaround plan to boost revenues and profit margins.

Under her watch, the company has divested a number of business lines in the last several years. It also has launched a major stock buyback program this year that will total about $1 billion and between $2.5 billion and $3 billion over three years.

The company’s shares, which have bounced around since Sara Lee announced Barnes’ temporary departure from the helm, rose about 2 percent in early trading Monday to almost $15 a share. Sara Lee stock is up around 65 percent over the past year, well outpacing the close to 20 percent return of the S&P 500 index.

When Sara Lee announced Barnes’ medical leave, Timothy Ramey, an analyst at D.A. Davidson, said he credited her for having “gotten this company on track.” He chose not to comment Monday.