Johnson Controls chief executive officer George Oliver has informed the company’s board of directors that he plans to step down from the position he’s held for the past seven years.
The company, which is technically based in Ireland but has its operational headquarters in Glendale, did not share an exact date for Oliver’s departure but did say in a Wednesday announcement that a succession plan has been initiated.
The Johnson Controls board of directors has started a “comprehensive search” for the company’s next CEO with help from an executive search firm. 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.
“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,” said Oliver. “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. 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.”
Oliver leading the company through a transformation into a solutions provider focused on commercial buildings was the subject of a BizTimes cover story in March.
Johnson Controls have been taking part in a “constructive dialogue” with New York-based Elliott Investment Management, according to Wednesday’s announcement. Elliott Investment is an activist investor that purchased a billion-plus stake in Johnson Controls earlier this year, according to Bloomberg. Elliott Investment is among the top 10 investors of Johnson Controls.
Following discussions with Elliott Investment, Johnson Controls has also announced that Patrick Decker, the former president and CEO of Xylem Inc., will be appointed to the company’s board.
With the appointment of Decker, the company’s board is comprised of 13 directors, 12 of whom are independent.
“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 Investment. “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.”
