RB Global replaces CEO after a dispute over compensation
2023.08.02 08:59
© Reuters. FILE PHOTO: The sign outside Richie Bros. Auctioneers is seen in Longmont, Colorado, U.S., February 21, 2017. REUTERS/Rick Wilking/File Photo
(Reuters) – RB Global, formerly known as Ritchie Bros (NYSE:). Auctioneers Inc, said on Wednesday Chief Operating Officer Jim Kessler would become its CEO with immediate effect following the departure of Ann Fandozzi after a dispute over compensation.
The company, which in March completed the $7 billion deal for U.S. auto retailer IAA (NYSE:) Inc after a much-contested process, also disclosed the exit of Chief Financial Officer Eric Jacobs.
Ann Fandozzi demanded a “front-loaded compensation” program that would bring forward five-years of equity compensation to continue as CEO, which the board determined reaches far beyond peer group benchmarks, the company said.
Ann Fandozzi didn’t immediately respond to Reuters’ request for comment.
As CEO, she had pushed forward with the IAA deal despite opposition from proxy advisory firms Institutional Shareholder Services and Glass Lewis, as well as shareholders Luxor Capital Group and Eminence Capital.
Kessler joined the company, which auctions and sells used heavy industrial equipment, in 2020 and played a major role in the due diligence underpinning the IAA deal, the company said.
Meanwhile, the company named insider Megan Cash as principal finance and accounting officer.
RB Global reported a 128% jump in second-quarter revenue to $1.1 billion, including IAA’s contribution of $560.4 million.
