Acquisitive CEO’s pay push belongs in scrap heap

RB Global

07/08/2023 16:57

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Jonathan Guilford
       NEW YORK, Aug 7 (Reuters Breakingviews) - After beating
back unhappy shareholders to complete a $7 bln junkyard deal, RB
Global boss Ann Fandozzi sought to accelerate her equity grants.
When the board said no, she apparently quit. It’s a welcome case
of directors swinging the wrecking ball on runaway CEO rewards.
    Full view will be published shortly.
    Follow @JMAGuilford on Twitter
    
    CONTEXT NEWS
    RB Global, which operates marketplaces for used commercial
equipment, said on Aug. 4 that Ann Fandozzi disputes that she
verbally tendered her resignation as chief executive in a fight
over her pay package.
    The company said on Aug. 2 that Fandozzi told the board she
intended to resign and that the board had advised her it was
accepting her resignation. Jim Kessler, RB Global’s president
and chief operating officer, was appointed CEO and a director,
effective immediately.
    “Absent Ms. Fandozzi tendering her resignation as requested,
she remains a director on the board,” the company said.
    Fandozzi had sought board approval to accelerate five years
of equity grants, the company said. The grants would have still
been subject to vesting criteria.
    Formerly known as Ritchie Bros Auctioneers, the company on
March 20 completed a $7 billion acquisition of salvage-yard
operator IAA, overcoming objections from proxy advisory firms
and dissident shareholders.

 (Editing by Jeffrey Goldfarb and Oliver Taslic)
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