Incoming Cummins President and CEO Jennifer Rumsey, left, and Cummins Chairman and CEO Tom Linebarger answer questions during a press conference at the Cummins Corporate Office Building in Columbus, Ind., Thursday, July 14, 2022. Rumsey is the first woman CEO since the company was founded more than 100 years ago.
Republic file photo
Cummins President and CEO Jennifer Rumsey, a Columbus native, will become chair of the company’s board of directors next month as the Cummins’ former chief executive plans to step away after three decades with the company.
The Columbus-based company announced Wednesday that Rumsey would take on the role starting Aug. 1 after former Chairman and CEO and current Executive Chairman Tom Linebarger retires from the company and the board at the end of July.
The Cummins Board of Directors unanimously voted to name Rumsey as chair. Rumsey, who was named president and CEO in August, held a number of roles during her more than two decades with Cummins before being named to the board and promoted to chief executive last year, including chief technical officer, president of the components business and chief operating officer.
Rumsey is the first woman to ever chair the board for Cummins in the company’s 104-year-history. The company is headquartered in Columbus and employs about 8,000 people in the area.
“I am deeply humbled to assume the role of chair,” Rumsey said in a statement Wednesday. “I would like to extend my sincere gratitude to Tom who has been an extraordinary leader for this company and an invaluable colleague and mentor to me. His leadership of this company has shaped my journey and approach to leadership at Cummins and helped position us for a bright future. As we look ahead, we will continue to create innovative solutions that effectively address our customers’ needs while making a positive impact on the communities we serve.”
Linebarger will be stepping away from Cummins after 30 years at the company, which included a 10-year tenure as chairman and CEO from 2012 to 2022.
During his tenure as chief executive, the company grew its revenue from $17.3 billion to a record $28.1 billion last year. Linebarger also led the evolution of the company as the diesel industry finds itself at a crossroads of sorts, as alternative fuel technology grows in viability and concerns about climate change continue to mount.
Some of those efforts included the formation of Accelera by Cummins, the company’s zero-emissions solutions business segment, and the broadening of its product portfolio through mergers and acquisitions, including Meritor, which was the largest acquisition in the company’s history, officials said.
“Jennifer’s appointment as chair comes at a pivotal time for Cummins and the entire industry,” Linebarger said in a statement. “Her strategic vision for Cummins, centered on delivering solutions that meet our customers’ needs while reducing our impact on the environment, will help lead our company in the transition to a decarbonized future. On a personal note, I am filled with immense pride and gratitude for the privilege of being part of this remarkable company for the past 30 years. I am delighted to pass this role to Jennifer and firmly believe that she is the ideal leader to guide Cummins at this important time.”
The move also will give Cummins’ chief executive the combines roles of CEO and chair once again.
The two roles have been held by two different people since Rumsey was promoted to chief executive last year. Linebarger previously held both roles but was named executive chairman when Rumsey took over as CEO to work with her on “specific initiatives that position the company for continued success,” the company said at the time.
In May, Cummins shareholders rejected a proposal that sought to divide the company’s chairman of the board and CEO roles into to two separate positions that would be filled by two different people.
The proposal, which was submitted by a Cummins shareholder, argued that the chairman and CEO “are fundamentally different” and should be held by two different people, with the chairman coming from outside the company “whenever possible.” Similar proposals were voted down in 2022, 2019, 2015 and 2013.
The Cummins board of directors recommended shareholders to vote against the proposal, arguing in a proxy statement filed with regulators that shareholders would be “best served if the board retains the organizational flexibility to select the best person to serve as chairman,” even if that person also is CEO.
“Our board has the freedom to determine the optimal leadership structure for the company, including, when appropriate, separating the roles of chairman and chief executive officer, based solely on what it believes is in the best interests of the company and its shareholders,” the board said in its proxy statement. “Given the dynamic and competitive environment in which the company operates, this flexibility allows our board to decide what leadership structure works best for our company based on the facts and circumstances existing from time to time.”
By Andrew East. The (Columbus) Republic is a sister newspaper to the Daily Journal.
