Market news, 19 December 2024
Johnson Controls, a global leader in smart, healthy, and sustainable buildings, has announced that George R. Oliver, Chairman and CEO, has informed the Board of Directors it is time to initiate the CEO succession plan following significant progress in the company’s portfolio transformation. Oliver has been at the helm since 2017, leading the company through a period of substantial change and growth.
The Johnson Controls Board has commenced a comprehensive search for the company’s next CEO, engaging a nationally recognized executive search firm to evaluate both internal and external candidates. Oliver will continue to serve as Chairman and CEO until a successor is appointed, after which he will remain as Chairman to ensure a smooth transition.
"It has been an honor to serve as CEO of Johnson Controls. I am proud of our achievements in positioning the company as a leader in comprehensive solutions for commercial buildings. As we complete our business transformation and move into the next phase of growth, it is the right time to identify the next leader," said Oliver. "Johnson Controls is now a leading provider of smart building technology, creating value for customers and shareholders. I look forward to supporting the team in achieving the company’s full potential."
Jürgen Tinggren, Lead Independent Director, expressed the Board’s gratitude for Oliver’s leadership: "George has successfully led Johnson Controls through significant evolution, optimizing the company to deliver greater value. The Board will work closely with George to find the best individual to lead Johnson Controls into the future."
As part of its ongoing efforts to refresh its Board and following discussions with Elliott Investment Management L.P., Johnson Controls has appointed Patrick Decker to its Board of Directors, effective immediately. Decker, the retired President and CEO of Xylem Inc., brings extensive experience in transforming industrial products companies into advanced technology and solutions enterprises. With Decker's appointment, the Board now comprises 13 directors, 12 of whom are independent.
"Patrick is a fantastic addition, reflecting our commitment to ensuring our Board’s skills and experiences align with Johnson Controls’ evolving business," said Tinggren. "We are excited to benefit from his expertise."
Marc Steinberg, Partner at Elliott, commented on the leadership changes: "Under George's leadership, Johnson Controls has built an industry-leading portfolio. The actions announced today, alongside recent portfolio changes, position the company to enhance operational performance and drive significant shareholder value."
George R. Oliver has served as Chairman and CEO of Johnson Controls since September 2017. He previously served as CEO of Tyco and led the integration following the 2016 merger with Johnson Controls. Oliver has over 20 years of experience with General Electric (GE), where he held several senior operational roles.
Patrick Decker is the retired President and CEO of Xylem Inc., having led the company from 2014 to 2023. He previously held leadership positions at Harsco Corporation and Tyco. Decker holds a Bachelor’s degree in Accounting and Finance from Indiana University.
Johnson Controls is committed to continuing its innovation and leadership in smart building technology, ensuring a seamless transition as it moves forward with its new CEO.
