AutoNation begins search for new CEO; Jackson to transition to executive chairman

At the time of Iserman’s promotion last year, Jackson noted that the move didn’t mean his new COO would have the inside track to the CEO job. Jackson told Automotive News then that the company would consider AutoNation’s entire leadership team to replace him when he retired, as well as candidates from the outside.

In addition to Iserman, he touted other executives including Scott Arnold, executive vice president of customer care and brand extensions; CFO Cheryl Miller; and Chief Marketing Officer Marc Cannon.

The Penske model

Jackson also said back then that his retirement plans were far off. He previously signed a contract in January 2015 that extended his employment with AutoNation until at least 2019.

In 2013, shortly before Jackson turned 65, he told Automotive News that he planned to stay with the company indefinitely, asserting that he wanted to emulate Roger Penske’s leadership timeline. “Let’s say Roger retires when he’s 85, in which case I’ll be [near] 75. You can then say: ‘Mike’s going to retire in 10 years.’ Whatever Roger’s in for, I’m in for.” Penske is now 81 and continues as chairman and CEO of the rival auto retailer.

In a separate statement, Jackson declined to say whether he thought he would be up for another contract extension beyond the just-announced 2021 date.

“I am focused on the near term, which is the continued success of AutoNation’s brand extension strategy, continued digital [transformation] and preparing the company for the transition to the new CEO,” Jackson said.

AutoNation’s lead independent director, Michael Larson, in the statement praised Jackson’s leadership at the retailer for the past 20 years.

“AutoNation’s board will initiate its search for the next CEO who can take the baton from Mike and lead AutoNation into its next phase of continued growth and success,” said Larson, who is chief investment officer for Microsoft co-founder Bill Gates. Gates, through his various investment vehicles, became AutoNation’s largest shareholder in early 2016.

Lured by Huizenga

Jackson joined the retailer in 1999, wooed from the top job at Mercedes-Benz USA by the late AutoNation founder Wayne Huizenga. He was met with immediate challenges -- Jackson has described it as “chaos” -- and moved quickly to close most of the retailer’s 29 used-car megastores and convert the rest to new-car dealerships. He also killed plans for a national brand rollout, though he kept the idea close and bided his time until the 2013 rollout of the AutoNation brand on all of the company’s dealerships save for luxury-brand stores.

Jackson now touts mission accomplished on AutoNation’s turnaround. In July, he was inducted into the Automotive Hall of Fame in Dearborn, Mich.

“I’m always looking for ways to maintain our industry-leading status, from diversifying our portfolio mix to creating our own branded products, to establishing a culture where 26,000 strong are focused on driving out cancer,” Jackson said. “Having implemented each of these successfully, and understanding the changing retail automotive landscape, it was clear that time was now for the transition.”