Johnson Controls (JCI) has announced that George R. Oliver has informed the Board of Directors that it is time to initiate the CEO succession plan following the company's substantial progress on its portfolio transformation, according to a press release. Oliver has led Johnson Controls' business and portfolio transformation since becoming Johnson Controls' chairman and CEO in 2017.

Accordingly, the Johnson Controls Board has begun a comprehensive search for the Company's next CEO with the assistance of a nationally recognized executive search firm to aide in the evaluation of internal and external candidates. 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 to allow for a smooth management transition.

"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. 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," Oliver said in the press release. "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."

"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, Johnson Controls lead independent director. "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 our shareholders. The Board will work closely with George to conduct a thorough and comprehensive search to identify the best individual to lead the future of Johnson Controls."

BOARD REFRESHMENT

As part of the Company's ongoing Board refreshment efforts and following a constructive dialogue with Elliott Investment Management L.P. (together with its affiliates, "Elliott"), Johnson Controls appointed Patrick Decker to serve on its Board, effective immediately, the release states. Decker previously served as president and CEO of Xylem Inc. prior to his retirement. With the appointment, the Board is comprised of 13 directors, 12 of whom are independent.

"Patrick is a fantastic addition of a world-class executive with experience transforming Xylem from an industrial products company to an advanced technology, services, and solutions enterprise," said Tinggren. "Patrick's appointment reflects our commitment to continuously refresh our board to ensure the skills and experiences of our directors appropriately reflect Johnson Controls' transforming business. We welcome Patrick to the Board and are excited to benefit from the experience and expertise he will bring."

"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. "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."

ABOUT GEORGE OLIVER

Oliver is Chairman and Chief Executive Officer of Johnson Controls. Prior to becoming CEO on Sept. 1, 2017, he served as president and chief operating officer with responsibility for the company's operating businesses. He also led the integration of Johnson Controls and Tyco following their September 2016 merger.

Oliver previously served as CEO of Tyco and as a member of its Board of Directors from September 2012 through the September 2016 merger with Johnson Controls. He joined Tyco in July 2006 as president of Tyco Safety Products and assumed additional responsibility as president of Tyco Electrical & Metal Products from 2007 through 2010. He was appointed president of Tyco Fire Protection in 2011.

Prior to Tyco, Oliver had a more than 20-year career with General Electric (GE), where he served in operational roles of increasing responsibility in several divisions including as president and CEO of GE Water & Process Technologies and president and CEO of GE Engine Services, as well as previous leadership roles in GE's Aircraft Engines and Appliances divisions.

Oliver holds a Bachelor of Science degree in mechanical engineering from Worcester Polytechnic Institute, where he serves as a member of the Board of Trustees.

ABOUT PATRICK DECKER

Decker is the retired president and CEO of Xylem Inc., a leading water technology provider. Decker served as president and CEO from March 2014 through December 2023.

Prior to leading Xylem, Decker served as president and CEO of Harsco Corporation, a global industrial products company, from 2012 until 2014. Prior to Harsco, he served in various leadership roles at Tyco from 2003 until 2012, including as president of Tyco Flow Control, a global provider of industrial solutions to the energy and water sectors.

Prior to Tyco, Decker served with Bristol-Myers Squibb for 12 years in financial and operational roles, predominantly in its Latin America and Asia divisions. He started his career with Price Waterhouse LLP.

Decker holds a Bachelor of Science degree in Accounting and Finance from Indiana University.