State Farm names Tipsord CEO; Rust remains board chairman

June 04--BLOOMINGTON -- Michael Tipsord will become CEO of State Farm Insurance Cos. in September, succeeding Ed Rust Jr., who will remain chairman of the board.

Tipsord is State Farm president and chief operating officer. The Bloomington-based insurer made the announcement Thursday morning.

Rust has been CEO for 30 years. He will continue as chairman of the board.

In a statement, Rust said State Farm Mutual Board of Directors had unanimously agreed with his recommendation to elevate Tipsord.

The insurer said neither Rust or Tipsord would be available to speak with media.

"He has carved a path for our community to be as successful as it has been," said Kyle Ham, chief executive officer of the Bloomington-Normal Economic Development Council. "We are looking forward to working with the new CEO."

Rust was named CEO in 1985 and is the company's longest-serving CEO. He turns 65 this summer.

"He has been a longtime leader in the insurance industry, and under his leadership State Farm has grown from serving 45 million policies to serving more than 82 million policies and financial services accounts," said state Sen. Bill Brady, a Bloomington Republican.

He also congratulated Tipsord.

"I am confident State Farm will continue to flourish under his leadership, and I look forward to working with him on behalf of the people of Bloomington-Normal," Brady said.

"He's an institution," said state Rep. Dan Brady, a Bloomington Republican. "Ed was always engaged on behalf of State Farm and his employees. He provided so much for not just our community, but across the nation. State Farm is one of the top insurance companies because of his leadership."

David Taylor, president of United Way of McLean County, worked at State Farm for 18 years at the same time he was a United Way volunteer before he became United Way president.

Rust's impact at State Farm and throughout McLean County has been profound, Taylor said. He noted Rust's support for education initiatives in McLean County and nationwide. Rust supported a culture at State Farm that emphasized the importance of community involvement, Taylor said.

"State Farm, under Ed Rust's leadership, has been active and proactive in the community," Taylor said. "State Farm's impact is felt in all parts of the community, especially in the human services' sector."

John Penn of Bloomington, vice president of Laborers International Union Midwest Region, said "Ed has been such a great friend to our community and to organized labor."

Penn said that all State Farm building projects in McLean County have been completed by union craftspeople.

"I hope that State Farm and labor continue their relationship."

"Ed's been a fixture in the community for many, many years," said Normal Mayor Chris Koos. "I'm not surprised he's retiring. We'll miss him as CEO of State Farm. He certainly cared about the community and was a very strong voice for education.

"He helped Normal with a grant to hire our (Normal Police Department) person who helps at-risk youth and they've continued to fund that. I certainly see (community support) continuing," he said.

"It's an end of an era," added Normal City Manager Mark Peterson. "The Rusts have been in charge for a long, long time. This will be a dramatic change. Michael Tipsord has local connections ... knows the community. I think it will be a positive thing especially with the fact that Ed Rust will continue to be chairman of the board."

McLean County Board Chairman Matt Sorensen said State Farm is a massive contributor to the ongoing success and stability of McLean County. "Mr. Rust has been at the steering wheel for over 30 years," he said. "We owe him and the organization a great deal."

Added Bloomington Mayor Tari Renner: "Ed Rust has been an outstanding leader -- within his company and the community. I'm glad he's still staying on as chairman of the board."

Illinois Wesleyan University President Dick Wilson said the university has "benefited tremendously" from Rust's service and from its partnership with State Farm.

"Ed has been a very loyal and active member of the Board of Trustees at Illinois Wesleyan for a very long time. He attends board meetings and committee meetings on a regular basis," Wilson said. "We're very grateful for that service, and it will continue."

Wilson said State Farm has provided funds for construction, scholarships and endowed professorships at IWU. He described their relationship as "broad and deep."

"The success of the university has been tied to State Farm," said Wilson, noting Tipsord, like Rust, is an IWU alum.

"We're ecstatic for both of them," said Wilson.

Illinois State University Chief of Staff Jay Groves described Rust as "a wonderfully intelligent and articulate man who cares very much about higher education."

"Our president, Larry Dietz, has had the experience of having several conversations with Mr. Rust, and he's come to campus obviously many times," he said.

Groves said State Farm and ISU have "a longstanding partnership" including through ISU's College of Business, also known as the State Farm Hall of Business.

"State Farm leaders have worked as mentors and as members of university advisory boards and in the College of Business," he said. "Thousands of ISU grads have worked at State Farm."

Groves said officials "look forward to working with Mr. Tipsord and continuing the outstanding relationship we've had with State Farm."

Barry Reilly, superintendent of Bloomington's District 87 schools, said he has "known Ed since his son, Barry, attended Bloomington High School in the early 90s," when Reilly worked in the building.

"He's just a great guy. He's engaged in his own local community. He's down to Earth. I think that's really served him well in his role as CEO of State Farm and in his leadership in educational issues across the community," Reilly said.

Reilly said Rust "is a proud BHS grad, and he's had a significant influence," including helping to create the Illini Data System that teachers use to track and forecast student academic progress.

State Farm has also been a hugely important partner for the district through Rust's tenure, Reilly said. The company supports summer programs, donates equipment including laptop computers and gives grants to classroom projects.

Reilly said he doesn't know Tipsord but looks forward to working with him. He said Michael is a brother of LeRoy Superintendent Gary Tipsord.

"State Farm has lived up to their billing of being a good neighbor for us, and we hope that continues," Reilly said.

State Farm, based in Bloomington, is the nation's leading insurer of vehicles and homes. It also offers personal banking, mutual funds and retirement planning services.

This story will be updated.

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