Johnson Controls CEO George R. Oliver has announced he is stepping down as he plans to retire after guiding the company in several strategic decisions that will define its course into the future.
Oliver’s decision was announced during an optimistic Q3 2024 earnings call, where the company disclosed that Oliver informed the company’s Board of Directors of his intentions.
“Following recent significant milestones in our portfolio transformation and as we move into 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 during the call. “I am confident in our position as Johnson Controls enters its next chapter, and I remain committed to supporting the full team as we work to ensure Johnson Controls realizes its full potential.”
The Board, alongside a nationally recognized search firm, will begin its search for the company’s next CEO, evaluating both internal and external candidates for the role. To facilitate a smooth management transition, Oliver will continue to serve the company as chairman and CEO until his position is succeeded, after which he will remain involved as Board chairman.
“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, Lead Independent Director at Johnson Controls. “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 shareholders.”
Oliver joined Johnson Controls after the company’s merger with Tyco International in 2016. As Tyco’s CEO, Oliver oversaw the integration of the two companies, and his leadership skills earned him the position of President and Chief Operating Officer of the new Johnson Controls. One year later, he was appointed CEO.
In July, Oliver helmed a significant portfolio simplification effort by selling off Johnson Controls’ Residential and Light Commercial (RL&C) HVAC business to the Bosch Group, a decision that aligned with the company’s new direction as a “pure-play provider” of commercial building solutions.
During the 12-month transaction finalization period, Johnson Controls will undergo significant restructuring in favor of the streamlined business model.
“Johnson Controls is already benefiting from our transformation, which enables the unparalleled value proposition we provide to customers, and exposure to rapidly accelerating demand in the data center market and other key macro-economic tailwinds. We believe Johnson Controls is well-positioned for its next phase of growth to deliver enhanced, long-term value to shareholders,” Oliver said in the official press release regarding the transaction.
This move was one in a long line of strategic sales by the company to offload non-core businesses, largely from its portfolio of heating and ventilation assets. It could be far from the last, though. According to three anonymous sources in an exclusive with Reuters, its ADT alarms business is likely next, though Johnson Controls refused to comment on the rumor.
Whatever the company’s future plans might be, Oliver is certain he’s leaving its mission in good hands.
“It has been a true honor to serve as CEO of Johnson Controls,” said Oliver. “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. I am confident that Johnson Controls is solidly positioned for its next chapter, and I look forward to supporting the team to ensure the company achieves its full potential.”
