Resideo CEO To Step Down

By John Honovich, Published Dec 03, 2019, 08:26am EST (Info+)

Resideo's CEO, Mike Nefkins, is stepping down, just 18 months after being brought in to lead the now plagued spin-out.

Inside this note, we examine the issues Resideo is facing and the future for the Honeywell Homes / ADI spinout.

Nefkens ****** *** ****

**** * **** *** * **** ago,******* *** ******* **** ********* ** **** *** ******* of *** ***** / *** **********.

*** ******** *** **** ******* *** no ********** ** **** ******** *** he *** **** ** ********* ** Hewlett ******* (***) *** *** **** of *** ********** **** **** ****-*** an *** ********. ****** ****** ******* Honeywell / *******, ******* *** *** by *** *******,********* ** *** ********.

Resideo ********

*******'* ***** *********** *** **** **********, as *** ***** ***** *****:

**** ********** ** *******, **** *** CFO ******** *** ****** ************** **** a **** ** ******** *** *********,******* *** ***** **** ******* **%(*** **** / **** ** *** right **** ** *** ***** *****).

* **** *** *** ******* ** at *** **** ****, ***** **** $115,000 ***** ***** ****.

Stepping ****

***, ******* ********* ** **** ****, **** *** ******* ****** '****** health ******':

*** *******’* ********* *** ***, **** Nefkens, *** *** ***** **** ******** agreed ** * **********, ***** **** allow **** ** ***** ** ****** health ******. ******* *** ****** ** continue ***** *** ********* ** *********, at ***** **** ** **** **** step **** **** *** ***** ** directors.

***** *** ** ****** ****** ******, we ** *** ****, ****** **** is ******** **** ** * *** to **** **** **** ********** *** cut.

**** ** ***** ** **** *** company's *********** *** ***** *********** ** unsatisfactory ** *********.

Homes ** *** ******** *****

******* ******** ** *** ******** ***** - ********* ***** *** ***. ***** there *** **** '*********' (*.*., *** sells **** ********* ***** ********), **** are ************* ********* ********** (******* ** distribution).

*** *******, *** ** ***** **** but ********* ***** ** ***. ********** ***** ******** ********* ***** ****** here.

What ****?

*** ********* ********* ** ***:

  • **** **** ***** ** ******* **** experienced ** *** '*****' ******* ****? Per ***** *** **********, **** *** problems ************* *** ********** ** ******** out / ******* ***** ******* ***** independently **** *********.
  • **** **** **** ** **** ***? Is *** ****** ** ******* * continued *********** ** *** *** ********* Homes ** **** **** **** ******* value ********** *** ***?

*******'* ****** ************** ** **** **** $1 *******, * *** ***** *** a $* ******* ****** ******* *******. The **** **** ** **** ** will *** ** **** **** ** improve ** **** * *** *****.

Comments (19)

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There may be family health issues, we do not know, though this is commonly used as a way to save face when executives are cut.

in the same way that final exam week at college has been linked to an increase in grandmother mortality, a sudden drop in share price may be linked to a CEO’s increased risk of familial health issues ;)

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Even SSI framed the reason given skeptically:

One element I missed in the original report is that ex-FLIR CEO Andy Teich is going to be involved in this transition:

Nefkens will be supported by Andy Teich, the company’s lead independent director, through the transition period.

Teich left FLIR in June 2017.

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Retired to spend time with family.

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I used to work for Honeywell, and my residual affection for the company gave me hope that Resideo would be successful. However, all that hope went out the window when I got the letter in the mail saying that my Honeywell pension (yes, that still exists), was being transferred to Resideo.

Why on earth would you saddle a new venture with legacy pension liabilities? This seems like a foolish way to handicap the new company. Even if such a move were limited to pleasant, good-looking former employees like myself 😀, it seems like a bad fiscal decision.

The benefit of spinoffs is to allow the new company to be more nimble. From what I've heard, Residio has all the "processes" and bureaucracy of a large company, but without the huge piles of cash of a large company, and I know they have at least some legacy pension liabilities. The next CEO is hopefully a magician.

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More likely they are loading up the sacrificial lamb with liabilities in preparation for bankruptcy. Sorry.

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That thought did occur to me. This really isn't part of my retirement plan, I'm just surprised that I even still have a pension with them at all!

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On YouTube now: Resideo LIVE is a two-hour immersive experience–a chance for you to hear an entirely new vision from Resideo executives of what’s to come in smart home technology and experience the breakthrough products and services that will make it all possible.

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Stock price jumped 10% on the news:

Either investors are happy to hear about the CEO's family health issues or they are relieved to get a new CEO...

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Predictable outcome for the CEO< stock dropping, lawyers after them, and treatment of the customer base, left you wondering who is making those decisions. But Resideo (where did that name come from?) Is saddled with 110 Million a year( Honeywell product liability lawsuits settlement payments) in payments to Honeywell , pension debts and a long in the tooth Vista product line all the while the cash cow, the 5816 ( wireless door contact) has dropped like a rock in price and most likely volume. Then you have dealers moving quickly to QolSys and 2 GIG, Plus ADI is no longer your exclusive distributor, they now sell the other guys ,as a ADI counter guy just said to me last week "who wants to sell Vista when he can sell Qolsys, I get paid the same either way".

But ask yourself when has an outsider been successful taking over and running a big company in this industry. Better get Ben Cornett back to fix this mess.

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Larry good feedback and informative ADI story!

Resideo (where did that name come from?)

I assume it's a rhetorical question but just in case you really want to know their thinking:

Resideo is drawn from the combination of the words “residence” and “presidio.” To summarize the dictionary definitions:

Residence: a person’s home; the place where someone lives

Presidio: A garrison, a fortress

Together, these bring about thoughts of safety, comfort, security, strength, reliability and trust – in a name that expresses our identity as a technology company. These are timeless messages that are core to the Resideo business, as they express our focus on the home and our commitment to keeping the users of our products safe and comfortable.

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They could just bring back the king himself (well, not King Harris, the other king Roger Fradin).

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Roger Fradin

Note, Fradin has been the Chairman of the Resideo Board of Directors this entire time so if this guy is so good he probably needs to explain why Resideo has had so many problems so far.

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Roger Fradin is a very skilled, talented Executive that built Ademco into what it was before Honeywell bought it. I completed against him for years and worked for him at one time. Without Roger there, in my opinion, that company has no chance, but Honeywell has not done any favors to that business over the years. Too many legacy issues, loss of talent and stripped infrastructure , I can only imagine the operational and market problems they have.

There security engineering group under Honeywell got decimated. so they have to rebuild but without a core of engineers and marketing people who know the evolution of products it’s a very long process.

As an long time ADI employee recently told me “it is not easy being a distributor these days” one positive thing is ADI has a great core of people who have been around for a long time, the other major positive is the number 2 competitor to ADI is not a serious contender.

thanks for the insight of where the name came from. I still don’t care for it!!!

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Larry, thanks, very helpful!

the other major positive is the number 2 competitor to ADI is not a serious contender.

Harsh but fair! Speaking of which, Anixter Resisting Takeover From Competitor

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But Resideo (where did that name come from?)

it’s short for Residential Rodeo...

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Yeehaw!

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Now, Resideo's "President, Products & Solutions" has been demoted and removed from the Board, Resideo has disclosed:

Niccolo de Masi, the Company’s current President, Products & Solutions and Chief Innovation Officer, will continue to serve as Chief Innovation Officer, which will not be an executive officer position. Mr. de Masi resigned from the Company’s board of directors effective at the close of business on January 6, 2020.

His replacement is Sach Sankpal:

Sankpal most recently served as senior vice president for Emerging Industries at Trimble, Inc., a $3 billion in revenue company specializing in hardware and software for global industrial companies

Trimble consists of a variety of tech companies, though none I saw clearly have direct relevance or background to his new role on the security products side.

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Resideo has a new CEO: Jay Geldmacher, quote:

As a 30-year industry veteran, Geldmacher brings to Resideo experience leading a complex industrial and technology spinout, Artesyn Embedded Technologies. Geldmacher has delivered consistent results in both public and private-equity backed companies, combining operational excellence with thoughtful capital allocation to gain market share and grow profits in competitive technology markets. Most recently, Geldmacher was president and CEO of Electro Rent Corp, a leader in testing and technology solutions.

He left Electro Rent after less than a year as CEO.

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