BorgWarner promotes 2 key executives, signaling succession plans
Ronald Hundzinski, left, and James Verrier, right.
Photo credit: BORGWARNER
DETROIT -- BorgWarner Inc., signaling part of its future management succession plan, promoted executives Ronald Hundzinski and James Verrier to key operating posts.
The powertrain technology and components supplier, in a statement released today, also said CFO Robin Adams has been named vice chairman of its board of directors.
Adams, who will remain executive vice president and chief administrative officer, is being replaced as CFO by Hundzinski.
Hundzinski, 53, previously was BorgWarner's corporate treasurer and corporate controller. He will remain on the company's management board.
Verrier, 49, is being promoted to the newly created position of president and COO. He previously was president and general manager of BorgWarner's automotive chain division Morse Tec.
BorgWarner made the moves today as CEO Tim Manganello 62 gets closer to retirement.
All unit presidents and supply chain management will report to Verrier.
The moves were made to provide a solid succession plan as CEO Tim Manganello, 62, and Adams, 58, near retirement.
"Obviously, we're concerned about corporate governance in the long term," said Erika Nielsen, director of marketing and public relations. "Tim and Robin have been running the company for a long time, and this is all about making sure we have consistent, long-term strategies."
In an analyst note, Wells Fargo Securities LLC said the promotions provide investors additional confidence in BorgWarner.
"We believe the announcement provides investors with good visibility on the next generation of company leaders," the note said. "We believe the announcement should provide investors with comfort that the company has sufficient bench strength to build upon its success to date."
Shares in BorgWarner are up nearly 35 percent on the year, performing more than 22 percentage points better than the Standard & Poor's 500 index.