MAC Network Owner Hires Cost-Cutting, Quality-Control Expert

Electronic Payment Services Inc. has hired a Mr. Fix-it.

Robert T. Golitz is to begin Aug. 23 as executive vice president of quality assurance and process control at the owner of the MAC automated teller machine network.

A onetime chief information officer of AT&T Universal Card Services, he is expected to bring organizational and cost-cutting expertise. Electronic Payment Services has been plagued in the past year by legal problems, layoffs, rumors of a sale, and the failure of a smart-card initiative.

"It's no secret that they've had their share of challenges," an industry observer said of the Wilmington, Del., company, which is owned by Banc One Corp., CoreStates Financial Corp., KeyCorp, National City Corp., and PNC Bank Corp.

Mr. Golitz, 55, was most recently president and chief operating officer of Fleet Mortgage Group. He was lured there from AT&T Universal, only to downsize himself out last February when his responsibilities were merged with those of the chairman.

As senior vice president at AT&T Universal, Mr. Golitz took some credit for the company's 1992 Malcolm Baldrige National Quality Award.

An overhaul - some call it a bloodletting - that began in January left Electronic Payment Services without chief financial, technology, and human resources officers, as well as numerous marketing and technical people.

The moves were engineered by president Richard Garman, who was brought in last August by a dissatisfied ownership group.

Sources said Mr. Garman's mandate was to clean up the balance sheet and prepare for an initial public offering. But a former employee said investment bankers have not taken a shine to the joint venture in view of its problems delivering new products, such as home banking and check cashing, and increased competition with regional networks like Honor, Most, and NYCE.

"EPS has been great on ideas and concepts but hasn't been able to execute successfully," said Richard Robida, a consultant at Speer & Associates in Atlanta. Mr. Golitz "could bring some discipline in that area."

The former Electronic Payment Services employee, who asked not to be identified, said the appointment is "a transparent attempt" to satisfy the ownership and Wall Street.

Mr. Golitz said his goals include "increasing productivity, reducing unit costs, and increasing levels of service."

"I've never joined an organization that hasn't turned out to be a winner," he said, "and I'm not expecting EPS to be an exception."

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