Summary
Caterpillar Inc. (CAT) filed an 8-K report on December 13, 2018, detailing significant leadership changes within its Board of Directors. Effective immediately on December 11, 2018, CEO D. James Umpleby III was appointed as the Chairman of the Board, in addition to his existing CEO role. This move consolidates leadership at the top executive level. Furthermore, the independent members of the Board designated David L. Calhoun as the Presiding Director. Mr. Calhoun previously served as the non-executive Chairman. These changes are effective immediately and are intended to streamline governance. Investors should note this concentration of power with the CEO also holding the Chairman title, a common governance structure in many large corporations.
Key Highlights
- 1D. James Umpleby, III, the current CEO, has been appointed as the Chairman of the Board, effective immediately.
- 2Mr. Umpleby has held the CEO position since January 1, 2017, and has been a Board member.
- 3David L. Calhoun has been designated as the Presiding Director by the independent members of the Board, effective immediately.
- 4Mr. Calhoun previously served as the non-executive Chairman of the Board since April 1, 2017.
- 5The changes consolidate key leadership roles within the company.
- 6A press release dated December 13, 2018, provides further details and is incorporated by reference.