Johnson Controls announced that George R. Oliver has informed the Board of Directors that it is time to initiate the CEO succession plan following the company’s substantial progress on its portfolio transformation. Oliver has led the Johnson Controls’ business and portfolio transformation since becoming Johnson Controls’ chairman and CEO in 2017.
Accordingly, the Johnson Controls Board has begun a comprehensive search for the Company’s next CEO with the assistance of a nationally recognized executive search firm to aide in the evaluation of internal and external candidates. Oliver will continue to serve as chairman and CEO until a successor is named and will remain chair of the Board once the new CEO is named to allow for a smooth management transition.
“It has been a true honor to serve as CEO of Johnson Controls. I am proud of the remarkable success we have achieved in recent years to position our company as a pure-play provider of comprehensive solutions for commercial buildings. As we approach the completion of our business transformation and move to the next phase of growth, I believe that now is the right time to begin the process of identifying the next leader of the new Johnson Controls,” said Oliver. “Today, Johnson Controls is a leading provider of technology and solutions that make buildings smarter, creating a one-of-a-kind offering that drives value for customers and shareholders. Following this substantial milestone in our portfolio transformation, I am confident that Johnson Controls is solidly positioned for its next chapter, and I look forward to supporting the team to help ensure the Company achieves its full potential.”
“On behalf of the Board, I thank George for his unwavering passion, leadership and commitment to Johnson Controls over the last seven years and since our merger with Tyco,” said Jürgen Tinggren, Johnson Controls lead independent director. “As chairman and CEO, George has successfully led Johnson Controls through a period of significant evolution, with a clear vision to optimize the Company to deliver greater value for our customers, employees and our shareholders. The Board will work closely with George to conduct a thorough and comprehensive search to identify the best individual to lead the future of Johnson Controls.”
Board Refreshment
As part of the Company’s ongoing Board refreshment efforts and following a constructive dialogue with Elliott Investment Management L.P. (together with its affiliates, “Elliott”), Johnson Controls appointed Patrick Decker to serve on its Board, effective immediately. Decker previously served as president and CEO of Xylem Inc. prior to his retirement. With the appointment, the Board is comprised of 13 directors, 12 of whom are independent.
“Patrick is a fantastic addition of a world-class executive with experience transforming Xylem from an industrial products company to an advanced technology, services and solutions enterprise,” said Tinggren. “Patrick’s appointment reflects our commitment to continuously refresh our board to ensure the skills and experiences of our directors appropriately reflect Johnson Controls’ transforming business. We welcome Patrick to the Board and are excited to benefit from the experience and expertise he will bring.”
“Over the last several years under George’s leadership, Johnson Controls has built an industry leading portfolio that provides unique and critical building solutions to its customers,” said Marc Steinberg, Partner at Elliott. “As one of Johnson Controls’ largest investors, we believe the leadership and board actions announced today along with the recent portfolio changes position the Company to realize the benefits of its transformation, enhance operational performance and drive significant shareholder value creation. We appreciate the productive discussions we’ve had with George and his team and today’s financial results make it clear that Johnson Controls is on the right path to capitalize on the opportunities ahead.”
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