Less than two months after reporting that it expected to see a $110 million shortfall in revenue from its Products & Solutions segment for 2019, Resideo on Monday announced that president and CEO Mike Nefkens is resigning his post.
In a statement, the company said that Nefkens and the board have agreed to a transition that will allow him to focus on family health issues. Nefkens will continue with the company until a successor is appointed at which time he will also step down from the company’s board.
The company said that Nefkens will be supported by Andy Teich, Resideo’s lead independent director and former president and CEO of FLIR Systems, through the transition period.
"Resideo has a strong foundation to build on, with industry-leading distribution, innovative products and services, deep relationships with professional installers and expansive reach across our industry,” said Roger Fradin, the company’s board chairman. “As we advance our operational and financial transformation to enhance long-term shareholder value, we believe now is the right time to transition leadership of the company. We thank Mike for his hard work and appreciate his continued support of an orderly transition."
Strategic & Operational Committee Formed
In addition to the departure of Nefkens, Resideo also announced on Monday that it has formed a Strategic & Operational Committee that will be focused on market strategy, gross margin improvement and G&A simplification. According to a statement, the committee will directly oversee the company's previously announced operational and financial review. The review is designed to create a more efficient and profitable company, building on the strength of Resideo’s franchise. Resideo has retained experts in supply chain optimization and organizational excellence to assist in the review. The company plans to provide an update on the review in conjunction with the announcement of its fourth-quarter and full-year 2019 results, expected in February 2020.
The Strategic & Operational Committee also will reportedly provide focus and insight to the management team, particularly during the CEO transition period. The committee will be chaired by Teich.
"The board and I are committed to ensuring Resideo continues to simplify its operations while enhancing competitiveness and profitability, and focusing on the execution of its core business, which we believe will deliver substantial value for shareholders,” Teich said. “We intend to work closely with and oversee management during this important transitional period, drive all aspects of the operational and financial review, and ensure that results and recommendations of the review are promptly implemented."
New Independent Director
Also this week, Resideo announced that it is appointing Brian Kushner as its new independent director effective immediately. Kushner brings decades of experience leading corporate transformation efforts, having served in roles that include chairman, director, chief executive officer and chief restructuring officer at more than 30 public and private companies. He currently serves as senior managing director and leader of the Private Capital Advisory Services practice at FTI Consulting.
"It is exciting to join the board at this critical time in the company's transformation,” said Kushner. “With its leading connected home technology portfolio and its commitment to improving operational performance, I believe Resideo has tremendous potential to drive consistent, profitable growth and create long-term shareholder value."
