Johnson Controls Accelerates CEO Succession Plan
August 21 2017 - 11:40AM
Dow Jones News
By Cara Lombardo
Johnson Controls International PLC said Monday its Chief
Operating Officer George Oliver will assume the chief executive
post from Alex Molinari sooner than planned as the company looks to
regain its footing following its merger with Tyco International
PLC.
Mr. Oliver, who had been Tyco's CEO, will take on the top role
late next week rather than six months from now.
Johnson Controls said its board unanimously approved a plan for
Mr. Molinari, who started with the company in 1983 and has been CEO
since 2013, to leave his post and the board effective Sept. 1.
The news sent Johnson Control shares up more than 4% Monday
morning.
In conjunction with the change, board member Jürgen Tinggren
will become the board's lead independent director.
Mr. Tinggren said in prepared remarks that the board has been
impressed by Mr. Oliver's handling of the integration and believes
that "accelerating the transition provides clarity and
continuity."
Johnson Controls has been plagued by what analysts have called
an "alarming" cash flow shortfall, leaving it particularly
vulnerable to competition. The company also cut its 2017 earnings
per share range by 6 cents and its organic growth guidance from 3%
to 2%.
Mr. Molinari and other executives spent much of an earnings call
last month attributing the company's choppy cash flow to strategic
decisions, including the merger, and promising a quick
turnaround.
The tie-up with Tyco, completed last year, gave the maker of
power equipment and building controls a larger portfolio of
commercial heating, ventilation, air conditioning, and fire and
security offerings. Many investors have pushed for it to diversify
and pivot away from its core automotive equipment segment
faster.
(END) Dow Jones Newswires
August 21, 2017 11:25 ET (15:25 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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