Advance Auto Parts Announces Leadership Transition

first_imgAdvance Auto Parts today announced that its board of directors has appointed President George Sherman to the additional role of interim CEO, effective Jan. 3, 2016, the beginning of the company’s next fiscal year. Sherman will succeed Darren Jackson, who will retire as CEO and step down from the board on Jan. 2, 2016, after more than 11 years with the company, including the past eight years as CEO.AdvertisementClick Here to Read MoreAdvertisementThe company also announced that, effective immediately, current Board Chairman John C. “Jack” Brouillard will become executive chairman. In this role, Brouillard will continue to provide board leadership and work closely in an advisory capacity with Sherman as the company continues to implement its long-term strategy. The board also named board member John Ferraro to take on the role of lead independent director.Brouillard said, “Since joining Advance Auto Parts nearly three years ago, George Sherman has demonstrated a range of important skills through his efforts to expand our commercial business, improve operations and oversee the integration of General Parts. We are confident that George’s understanding of our business, strong customer relationships, and proven leadership abilities position him well to lead the company through this transition period. As part of our search process, the board will consider external candidates as well as George for the role of permanent CEO.”Brouillard continued, “On behalf of the board, I want to thank Darren Jackson for his extraordinary service to Advance Auto Parts. During his eight years as CEO, Advance has doubled in size while growing its market value more than $10 billion and increasing its share price from $33 to $195. Darren’s leadership and commitment to excellence have transformed Advance into an industry leader that is well-positioned strategically, operationally and financially to capitalize on the opportunities that lie ahead.”AdvertisementSherman said, “I am honored to have the opportunity to lead Advance Auto Parts during this interim period. With increased scale and reach, including loyal DIY customers and an expanding presence in the fast-growing commercial segment, we are well positioned to drive growth and achieve our margin targets. I look forward to continuing to work closely with our talented executives and the thousands of hard-working Advance team members as we build value for our shareholders, customers and team.”Jackson added, “It has been a privilege to lead this great company. Advance Auto Parts is well-positioned to build upon its position as a leading automotive aftermarket parts provider, and I am confident George will successfully guide Advance during this interim period in continuing to implement its strategic plan.”In other news, Advance has entered into an agreement with Starboard Value LP and its affiliates, which has an ownership stake of approximately 3.7 percent of Advance Auto Parts’ shares, regarding the membership and composition of the Advance Auto Parts Board.Under the terms of the agreement, Jeffrey Smith, Starboard’s CEO and chief investment officer, has been appointed to the Advance Auto Parts Board, effective immediately, and the size of the board has been expanded from 12 to 13 members. Smith will serve as chair of the nominating and corporate governance committee and also will be a member of the compensation and finance committees. In addition, Starboard will designate two independent directors to be added to the Advance board as soon as practical. The company will name two additional independent directors designated by the nominating and corporate governance committee for election at the company’s 2016 annual meeting. It is expected that following the 2016 annual meeting the board will have 12 or 13 members.last_img read more

Dairy groups urge Congress to fix COOL problem in year-end spending bill

first_imgIn a letter (PDF, 96KB) sent Thursday to House and Senate leaders, the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) expressed increasing alarm that new tariffs targeted at U.S. dairy exports to the two neighboring nations are potentially only weeks away.advertisementadvertisementThe tariffs would be imposed under a World Trade Organization (WTO) finding that parts of the U.S. country of origin labeling (COOL) law violate international trade rules, allowing retaliation by our trade partners.The WTO is set to announce on Monday the amount of retaliatory tariffs Canada and Mexico can place on U.S. exports as a result of the meat labeling law. After one more perfunctory approval step, the two countries could activate their tariff penalties as early as late this month.“It is critical that Congress resolve this challenge in the end-of-year spending legislation in a way that Canada and Mexico agree sufficiently addresses their concerns in order to remove the threat of retaliation tariffs,” the joint NMPF-USDEC letter said.The letter went to House Speaker Paul Ryan (R-Wis.), House Minority Leader Nancy Pelosi (D-Calif.), Senate Majority Leader Mitch McConnell (R-Ky.) and Senate Minority Leader Harry Reid (D-Nev.). A similar letter was sent to Senate leaders last month.The WTO ruled last spring that Canada and Mexico could retaliate against U.S. exports in response to its finding that parts of the U.S. COOL program were not compliant with U.S. WTO obligations. American dairy products have been on Canada’s target list for retaliatory tariffs resulting from the ruling, and Mexico has targeted dairy exports in prior retaliatory actions.advertisement“Retaliation against dairy products would come at a particularly harmful time for our industry, given the depressed global dairy market,” says NMPF President and CEO Jim Mulhern. “Multiple cooperatives have already faced an oversupply of milk this year.”“Retaliatory tariffs would back up exports further onto the U.S. market during a time of overly abundant milk supplies,” adds USDEC President Tom Suber. “U.S. dairy producers and processors cannot lose this chance to avoid considerable damage to the export markets they have invested so heavily in developing in recent years.”Canada and Mexico are two of the largest U.S. export markets. Together, they import more than $2 billion in U.S. dairy products annually.Congress has been discussing legislation to solve the COOL issue all year. The year-end omnibus spending bill, needed to fund the federal government after December 11, will be one of the last large measures considered by the House and Senate before they adjourn for the year.  PD—From National Milk Producers Federation and U.S. Dairy Export Council news releaseadvertisement Dairy producers and exporters today urged Congress to eliminate the threat of damaging new tariffs on dairy exports to Canada and Mexico by solving a trade dispute over country of origin meat labeling in the massive year-end spending bill currently being negotiated on Capitol Hill.last_img read more