In a surprising announcement Monday morning, United Technologies Corp. said CEO and Chairman Louis R. Chenevert has resigned effective immediately.
Chenevert is being replaced by UTC Chief Financial Officer Gregory J. Hayes on a permanent basis.
In a press release, UTC said Chenevert told the board of directors that he was retiring.
“The appointment of Greg Hayes to succeed Louis Chenevert continues the excellent leadership UTC has enjoyed for the past half century,” said Edward A. Kangas, who has been tapped at UTC’s new non-executive chairman. “The Board thanks Mr. Chenevert for his 22 years of service to UTC, his leadership over the last six years and for his many contributions and important transformational initiatives during his tenure. Greg is highly regarded by the board and by UTC employees, customers and shareowners. We are confident Greg will lead UTC to increasing profitability and shareowner returns.”
Financial analysts quoted Monday by Reuters and the Wall Street Journal said the announcement was unexpected.
David Cadden, a business professor emeritus at Quinnipiac University, said in a statement that the resignation was surprising because it came without warning.
“At 57, Chenevert would’ve normally been expected to serve at least eight more years in his current positions,” Cadden said.
He noted that UTC’s stock price has grown by 50 percent under Chenevert’s leadership, which he said is partly the result of acquisitions and restructuring that put the company on “a much more solid foundation.”
Hayes, 54, is a 25-year veteran of UTC who has served for the last six years as the company’s senior vice president and CFO. In addition to his other responsibilities as CFO, Hayes has directed communications and interactions between UTC’s board of directors and the investor community.
UTC today reaffirmed its expectations of 2014 earnings per share of $6.75 to $6.85 and sales of about $65 billion.
The company’s stock was trading down 92 cents at $109.38 at 11:40 a.m. Monday.
