How will the organizational structure change?

Honeywell will realign its organizational structure by moving the Honeywell Process Solutions (HPS) business from the Automation and Control Solutions (ACS) segment to the Performance Materials and Technology (PMT) segment. This change will be effective for reporting second-quarter 2014 results.

What are the new roles of Roger Fradin and Andreas Kramvis?

Roger Fradin has been appointed Vice Chairman, primarily responsible for advancing the Company's merger and acquisition strategy, assessing business strategies, and improving internal functional operations. Andreas Kramvis has also been appointed Vice Chairman, responsible for advising on business strategy, improving underperforming units, deploying the Honeywell Operating System Gold standard, and driving revenue growth in high-growth regions.

What is the financial impact of these changes?

The filing does not directly detail immediate financial impacts. However, the change in reporting segments (moving HPS to PMT) will affect how financial performance is presented starting in Q2 2014. Revised segment results will be provided to the financial community. The compensation and incentives for the promoted executives are also outlined.

HON/HONIV 8-K: Leadership Changes

Q: What are the key executive changes announced by Honeywell?

Honeywell announced the retirement of its CFO, David J. Anderson. Thomas A. Szlosek has been appointed as the new CFO. Additionally, Roger Fradin and Andreas Kramvis have been promoted to newly created Vice Chairman positions, and new leaders have been appointed for the ACS and PMT segments.

Summary

Honeywell International Inc. (HON) filed an 8-K on April 7, 2014, to announce significant senior leadership changes and an organizational realignment. The most prominent change is the retirement of David J. Anderson, Senior Vice President and Chief Financial Officer (CFO), effective June 1, 2014. Mr. Anderson will provide transitional support and consulting services through May 2016. The company has appointed Thomas A. Szlosek, previously VP of Corporate Finance, as the new CFO. Additionally, Roger Fradin and Andreas Kramvis have been promoted to newly created Vice Chairman roles, focusing on mergers & acquisitions and business strategy/performance improvement, respectively. Alexandre Ismail and Darius Adamczyk will take over leadership of the Automation and Control Solutions (ACS) and Performance Materials and Technology (PMT) segments, respectively. The filing also details the organizational realignment where the Honeywell Process Solutions (HPS) business will move from the ACS segment to the PMT segment, effective for reporting second-quarter 2014 results. This change impacts how financial performance will be reported, and revised segment results will be provided. Investors should note the terms of the separation and new roles for the departing and promoted executives, including vesting of stock options, awards, and restrictive covenants.

Key Highlights

1CFO David J. Anderson to retire effective June 1, 2014, with transitional and consulting services continuing through May 2016.
2Thomas A. Szlosek appointed as the new Senior Vice President, Chief Financial Officer, effective April 7, 2014.
3Roger Fradin promoted to Vice Chairman, focusing on M&A strategy and high-growth regions.
4Andreas Kramvis promoted to Vice Chairman, focusing on business strategy, underperforming units, and operational systems deployment.
5Organizational realignment: Honeywell Process Solutions (HPS) business to be moved from ACS to PMT segment.
6New reporting structure for segment financial performance to be effective for Q2 2014 results.
7Executive changes include new Presidents and CEOs for ACS (Alexandre Ismail) and PMT (Darius Adamczyk) segments.

HONEYWELL INTERNATIONAL INC 8-K Report, Executive Changes (Apr 7, 2014)

Summary

Key Highlights

Frequently Asked Questions