Former RB Global CEO Alleges Misrepresentation of Resignation
Former RB Global CEO Ann Fandozzi alleges misrepresentation of her resignation, citing a compensation dispute. RB Global shares decline 4.9%.
Former RB Global Chief Executive Ann Fandozzi has accused the company of misrepresenting the reasons for her resignation. In an emailed statement, Fandozzi expressed her gratitude to employees, customers, and shareholders, who had placed their trust in her. However, she did not specify the particulars of the misrepresentation.
RB Global, a company that operates auction sites for commercial assets and vehicles, announced earlier that Fandozzi and Chief Financial Officer Eric Jacobs had left the company, effective immediately. Jim Kessler, the Operating Chief, has been appointed as CEO, and the company has begun the search for a permanent CFO.
According to RB Global, the executive changes were a result of extensive negotiations with Fandozzi regarding her compensation structure. Fandozzi had requested the board to approve a front-loaded compensation program that would provide five years' worth of equity compensation upfront. However, the board unanimously determined that this structure and the magnitude of the payout deviated significantly from peer group benchmarks and market standards.
Fandozzi emphasized in her statement that her priority had been to maintain momentum while implementing an all-equity, at-risk incentive program to align management with long-term performance and shareholder value.
Following the announcement, RB Global shares experienced a decline of 4.9% to $82.11, with a maximum decrease of 14.2% on Wednesday.