Regal Rexnord Commences CEO Succession Process
Rhea-AI Summary
Regal Rexnord (NYSE: RRX) announced on Oct 29, 2025 that its Board has commenced a CEO succession search consistent with its succession planning. Louis Pinkham, CEO since April 2019, will remain in place until a successor is named and will resign from the Board upon appointment.
During Pinkham's tenure the company says enterprise value rose to $15 billion from about $4.5 billion and total shareholder return was nearly 100% (inclusive of reinvested dividends). The Board engaged a leading executive search firm and emphasized the company’s 30,000 associates and positioning across automation, power transmission and power efficiency markets.
Positive
- Enterprise value increased to $15B from ~$4.5B
- Total shareholder return of nearly 100% under current CEO
- Board engaged a leading executive search firm to manage succession
Negative
- Active CEO succession creates near-term leadership transition risk
- Company warns of risk in its ability to identify and attract a qualified CEO
News Market Reaction 12 Alerts
On the day this news was published, RRX gained 4.09%, reflecting a moderate positive market reaction. Argus tracked a trough of -8.0% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $401M to the company's valuation, bringing the market cap to $10.20B at that time. Trading volume was above average at 1.9x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
"On behalf of the Board of Directors, I want to thank Louis for his superb leadership and significant operational achievements for the Company during the formation, integration and transformation of the Company," said Rakesh Sachdev, Chairman of the Board of Directors. "The Board believes that the Company is well positioned for its next phase of growth based on the enhanced customer value proposition and all the work Louis and our dedicated team of 30,000 associates have done to date."
"It has been an immense honor to lead the Company for the past six plus years. I believe the Company's business and team are strong and that now is a good time for a new leader to drive the next chapter for Regal Rexnord. I look forward to continuing to lead the Company until the Board identifies my successor," said Louis Pinkham, Chief Executive Officer.
The Board of Directors is being assisted in the search process by a leading executive search firm. Mr. Pinkham will remain as CEO until a successor is identified to facilitate an orderly leadership transition. Mr. Pinkham will resign from the Board at the time of the appointment of the new CEO.
About Regal Rexnord
Regal Rexnord's 30,000 associates around the world help create a better tomorrow by providing sustainable solutions that power, transmit and control motion. The Company's electric motors and air moving subsystems provide the power to create motion. A portfolio of highly engineered power transmission components and subsystems efficiently transmits motion to power industrial applications. The Company's automation offering, comprised of controllers, drives, precision motors, and actuators, controls motion in applications ranging from factory automation to precision tools used in surgical applications.
The Company's end markets benefit from meaningful secular demand tailwinds, and include discrete automation, food & beverage, aerospace, medical, data center, energy, residential and commercial buildings, general industrial, and metals and mining. Regal Rexnord is comprised of three operating segments: Automation & Motion Control, Industrial Powertrain Solutions and Power Efficiency Solutions. Regal Rexnord is headquartered in
Forward Looking Statements
All statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as "anticipate," "believe," "expect," "intend," "plan," "may," "will," "would," "could," "should," and similar expressions, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements, including but not limited to risks related to the Company's ability to identify and attract a qualified candidate to serve as the Company's next CEO and other factors that can be found in our filings with the Securities and Exchange Commission, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
View original content:https://www.prnewswire.com/news-releases/regal-rexnord-commences-ceo-succession-process-302598862.html
SOURCE Regal Rexnord Corporation
FAQ
What did Regal Rexnord (RRX) announce on October 29, 2025 about its CEO?
How long has Louis Pinkham served as Regal Rexnord CEO before the Oct 29, 2025 announcement?
What financial changes did Regal Rexnord cite during Pinkham’s tenure?
Will Regal Rexnord (RRX) hire an external firm for the CEO search?
What immediate governance change did Regal Rexnord say will occur after the CEO appointment?
