Johnson Controls CEO George Oliver resigns

Johnson’s checks general manager George Oliver informed the company’s board that he plans to step down from the position he has held for the past seven years. The company, which is technically based in Ireland but has its operational headquarters in Glendale, did not provide an exact date for Oliver’s departure, but in an announcement Wednesday said a succession plan has been initiated. Johnson Controls’ board has launched a “comprehensive search” for the company’s next CEO with the help of an executive search firm. Oliver will continue to serve as chairman of the board until a successor is named and will remain chairman of the board once a new CEO is named. “It has been a true honor to serve as CEO of Johnson Controls. I am proud of the extraordinary success we have had in recent years to position our company as a comprehensive provider of commercial building solutions,” Oliver said. “As we approach the completion of the transformation of our business and transition to the next phase of growth, I believe the time is right to begin the process of identifying the next leader for the new Johnson Controls. Today, Johnson Controls is a leading provider of technologies and solutions that make buildings smarter, creating a unique offering that increases value for customers and shareholders. Following this important milestone in the transformation of our portfolio, I am confident that Johnson Controls is well-positioned for its next chapter, and I look forward to supporting the team to help ensure the company reaches its full potential.” Oliver, who led the company through its transformation into a solutions provider focused on commercial buildings, was the subject of BizTimes Cover Story in March. Johnson Controls engages in “constructive dialogue” with New York-based company Elliott Investment ManagementElliott Investment is an activist investor that bought more than a billion dollars in Johnson Controls earlier this year, according to Bloomberg. Elliott Investment is one of Johnson Controls’ 10 largest investors. After talks with Elliott Investment, Johnson Controls also announced that Patrick Deckerformer chairman and CEO of Xylem Inc., will be appointed to the company’s board. Decker’s appointment brings the company’s board to 13 directors, 12 of whom are independent. “Under George’s leadership over the past several years, Johnson Controls has built an industry-leading portfolio that provides its customers with unique and critical building solutions,” said Marc Steinbergpartner at Elliott Investment. “As one of Johnson Controls’ largest investors, we believe the actions of management and the board announced today, as well as recent portfolio changes, position the company to realize transformational benefits, improve operational performance and significantly create value for shareholders. We appreciate the productive discussions we have had with George and his team, and today’s financial results clearly demonstrate that Johnson Controls is well-positioned to capitalize on the opportunities ahead.”