The industrial auctioneer named Jim Kessler, its chief operating officer, to replace Ann Fandozzi as CEO while it searches for a new CFO
, the heavy equipment auctioneer formerly known as Ritchie Bros., appointed a new chief executive officer Wednesday in the wake of a compensation dispute, with the stunning management change sending the company’s shares plunging as much as 14 per cent.
The company is the world’s largest industrial auctioneer. It said the management changes were unrelated to RB Global’s performance, financial reporting or operating results. In a statement to Bloomberg, Ms. Fandozzi said she did not resign and that until recent weeks she believed “negotiations were still being pursued in good faith in the hope that this matter could be brought to an amicable resolution.”
The source said the two sides informally agreed to the structure last fall, prior to RB Global’s contentious US$7-billion deal to buy IAA Inc., a company that specializes in auctioning damaged cars, trucks and motorcycles. In March, RB Global finalized the deal after narrowly winning a battle with proxy advisory firms Institutional Shareholder Services and Glass Lewis, as well as two of its shareholders, Luxor Capital Group and Eminence Capital, all of which opposed the transaction.
Under the deal to buy IAA, RB Global’s official head office moved from Burnaby, B.C., to Chicago. In June that change led S&P Dow Jones Indices to drop the company from the S&P/TSX Composite Index after 15 years. Analysts said the management change came as a shock to investors. After the initial plunge, shares in the company, which has a market cap of $14.6-billion, recovered half their losses on the day, closing down 4.9 per cent.
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