MORRIS PLAINS, N.J.,
June 28, 2016 /PRNewswire/ --
Honeywell (NYSE: HON) today announced that Darius Adamczyk, President and Chief Operating
Officer, will succeed Dave Cote as
Chief Executive Officer on March 31,
2017. Cote, who has been Chairman and CEO of Honeywell since
2002, will continue as Executive Chairman until the Company's
Annual Shareowners Meeting in April
2018. After that, Cote will start a five-year consulting and
non-compete agreement with Honeywell. These moves ensure a seamless
leadership transition and position Honeywell for continued
outperformance versus peers.
"Darius is absolutely the right person to lead our Company into
a new era where we will need to keep evolving to become even more
global, more of a software company, and more nimble. He has the
growth mindset, global acumen, and software expertise to be a
highly successful CEO for Honeywell," Cote said. "Darius has
succeeded in every business leadership role he has ever held,
whether it was doubling the size of our Scanning & Mobility
business over four years, driving a dramatic turnaround of our
Honeywell Process Solutions business over two years, or expanding
margins in Honeywell Performance Materials and Technologies despite
a severe downturn in the oil and gas industry. Scanning &
Mobility and Honeywell Process Solutions are software-based
businesses with advanced offerings that blend physical and digital
capabilities, and they serve as benchmarks for where the rest of
Honeywell is heading. Darius' deep expertise in software will open
new growth paths for all of our businesses, which are blending
Honeywell's advanced software programming capabilities with
leading-edge physical products and unparalleled domain expertise in
a wide variety of industries.
"Darius thinks independently and has demonstrated that he can
evolve business strategies to fit evolving circumstances – a very
important skill because the world is changing rapidly. He is
analytically and strategically strong and results-oriented, and he
has a proven growth track record in High Growth Regions. In the
past few months as Chief Operating Officer, Darius has pushed our
businesses to develop bigger and better breakthrough strategies
under our Honeywell Operating System (HOS) Gold framework that will
put Honeywell on a sustained growth trajectory now and well into
the future. He understands Honeywell's business model – which is
grounded in our portfolio, processes, and culture – and he has a
valuable perspective from leading large and small businesses. From
his time as CEO of a small company, Metrologic, Darius understands
the need to be lean and to focus on breakthrough goals. From his
experience at Honeywell, he knows how to build scale and leverage
process excellence. With our tremendous diversity of opportunities
across businesses and around the world, Darius is brimming with
ideas and excited about what the future holds. We are confident he
will be a great leader in executing our strategic plans and driving
continued growth."
"It is a privilege to have the opportunity to take on a bigger
role at Honeywell and ultimately to become the CEO, fully supported
by Dave, our very strong Board, and a talented and experienced
leadership team," Adamczyk said. "It has been energizing to see all
the ideas we are developing and implementing to build on our great
positions in good industries. We have a long runway to accelerate
organic growth and drive margin expansion with new offerings that
blend our leading domain expertise with our advanced software
capabilities to improve the quality of lives, enhance safety and
comfort, and drive energy efficiency and productivity – all global
macro trends that are big today and will only get bigger tomorrow.
Software will represent a big portion of our growth over the next
several years, which is why about half of our 23,000 engineers
globally are software engineers. We are the first large Western
company to reach CMMI® Level 5 capability among all our
software engineers. This is a very high standard that uniquely
qualifies us to compete effectively in the Internet of Things
arena, where software capability has to be combined with product
and domain knowledge. Our HOS Gold-supported culture and processes
are fostering speed and entrepreneurialism among our global
business enterprises while allowing us to leverage the scale and
process strength of a large company."
Adamczyk, 50, was named President and Chief Operating Officer
earlier this year. Prior to that, he served as President and CEO of
Honeywell Performance Materials and Technologies (PM&T), a
$9.3 billion global leader in the
development of high-performance products and solutions, including
low global warming refrigerants, specialty films for healthcare and
photovoltaic applications, leading technologies for the global
refining and petrochemicals industry, and process solutions.
Previously, he was President of Honeywell Process Solutions (HPS),
a global leader in automation and control systems. He became
President of Honeywell Scanning & Mobility in 2008 when
Metrologic, where he was Chief Executive Officer, was acquired by
Honeywell. Prior to Honeywell, Adamczyk held several general
management assignments at Ingersoll Rand, served as a Senior
Associate at Booz Allen Hamilton, and started his career as an
electrical engineer at GE. Adamczyk earned a bachelor's degree in
electrical and computer engineering at Michigan State University, a master's degree in
computer engineering at Syracuse
University, and an M.B.A. at Harvard
University.
Cote, who turns 64 next month, was named Chairman and CEO of
Honeywell in 2002 and has led the Company to significantly
outperform peer companies and the S&P 500. Under Cote's
leadership, from January 1, 2003,
through May 31, 2016, Honeywell's
market capitalization grew from $20
billion to $87 billion.
Honeywell's cumulative total shareholder return was 556 percent
versus 214 percent for the S&P 500. The Company's annualized
dividend rate grew from $0.75 to
$2.38 over the same time period, an
increase of 217 percent, while its share price rose 374
percent.
"Dave has been a passionate and transformative leader throughout
his tenure at Honeywell, completely turning around the Company from
its initial state of disarray," said Jaime
Chico Pardo, Honeywell's Lead Director. "When Dave first
took the job, Honeywell consisted of three legacy companies –
AlliedSignal, Honeywell, and Pittway – that had not been integrated
culturally or financially. It had missed earnings consistently,
only 40 percent of sales were outside the U.S., the new product
pipeline was empty, and the dividend hadn't been raised in many
years. Today, the Company is globally respected with sales outside
the U.S. of 55 percent, a robust pipeline of new products that are
primed to create new industries and markets around the world, and a
strong and talented global workforce that represents the strong
portfolio, processes, and culture that Dave and his team have put
in place. Our dividend consistently grows faster than earnings, and
we have an M&A track record that anyone would envy.
"Given the rigor Dave has demonstrated in driving Honeywell's
performance over a long period of time, comparable attention was
paid to the selection of a successor and execution of a thoughtful
transition plan that allows Honeywell to continue to perform for
the long run," Chico Pardo said. "In
Darius, we have a proven leader who can enhance Honeywell's growth
rate and drive it to become the world's leading cyber-industrial
company. Dave and Darius will work very closely together not only
to make the transition seamless, but to use it to speed growth and
build a long-term competitive advantage in markets and industries
around the world. Darius has exhibited the leadership qualities and
operational expertise that will serve him well as Honeywell's next
CEO, and Dave and the Board will do everything possible to support
his success."
In addition to these management changes, Honeywell's Board of
Directors developed criteria for selection of a Lead Director
position. The Board selected Chico
Pardo, 66, for a two-year term with expanded
responsibilities because of his deep knowledge and understanding of
Honeywell gained during the past 16 years as a Board member, as
well as his valuable experience while leading Telefonos De Mexico.
Also, Chico Pardo, together with
members of the Honeywell Board's Management Development and
Compensation Committee, are
implementing a number of changes to Honeywell's compensation
plans. A summary of the expanded Lead Director role and
compensation plan changes can be found in the Company's newly filed
8-K, which is posted on Honeywell's Investor Relations
website.
Honeywell (www.honeywell.com) is a Fortune 100 diversified
technology and manufacturing leader, serving customers worldwide
with aerospace products and services; control technologies for
buildings, homes, and industry; turbochargers; and performance
materials. For more news and information on Honeywell, please visit
www.honeywell.com/newsroom.
This release contains certain statements that may be deemed
"forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical fact, that address activities, events or
developments that we or our management intends, expects, projects,
believes or anticipates will or may occur in the future are
forward-looking statements. Such statements are based upon certain
assumptions and assessments made by our management in light of
their experience and their perception of historical trends, current
economic and industry conditions, expected future developments and
other factors they believe to be appropriate. The forward-looking
statements included in this release are also subject to a number of
material risks and uncertainties, including but not limited to
economic, competitive, governmental, and technological factors
affecting our operations, markets, products, services and prices.
Such forward-looking statements are not guarantees of future
performance, and actual results, developments and business
decisions may differ from those envisaged by such forward-looking
statements. We identify the principal risks and uncertainties that
affect our performance in our Form 10-K and other filings with the
Securities and Exchange Commission.
Contacts:
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Media
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Investor
Relations
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Robert C.
Ferris
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Mark
Macaluso
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(973)
455-3388
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(973)
455-2222
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rob.ferris@honeywell.com
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mark.macaluso@honeywell.com
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SOURCE Honeywell