Ola Rollén, the former CEO of Hexagon, stepped down from his position in 2022 and instead took on the role of chairman for the measurement technology company. However, he expressed dissatisfaction with his successor, Paolo Guglielmini, confirming to Affärsvärlden that it was a recruitment mistake.
“It’s easy to look back and judge when you have all the facts in front of you. But it’s a bit harder to do so when you’re making the decision. We have to take responsibility for this, and it’s a failure on my part and on the board’s part,” Rollén stated.
The stock is down 2% today, and since Paolo Guglielmini was appointed CEO in June 2022, it has underperformed with a total return of -6%. This is in stark contrast to the Stockholm Stock Exchange, which has seen a total return index increase by 38% during the same period.
“In essence, we don’t believe the company has performed well enough under his leadership. That’s just the way it is,” Rollén added.
When asked what aspects haven’t developed as hoped, Rollén succinctly replied, “Sales and results.”
Paolo Guglielmini will receive a total of 24 months’ salary as severance pay.
Despite rumors that the decision to spin off the Asset Lifecycle Intelligence (ALI) business unit may have influenced the CEO change, Rollén clarified that this was not the case.
“This is not a strategic issue; it’s about implementing the strategy and the financial results from that strategy,” Rollén explained.
The potential spin-off is projected to occur 12-18 months down the line, as there are numerous legal and tax considerations that need to be addressed.
“We have strategically seen that these two parts are moving away from each other. Instead of being a conglomerate, we have stated that each business should be a superstar in its own strategic development,” Rollén emphasized.
Rollén also dismissed Citi’s suggestion that the CEO change contributes to uncertainty surrounding the spin-off.
“The uncertainty does not stem from the CEO change but rather from what all the experts are saying about tax issues and how to handle a spin-off,” Rollén clarified.
While the company will not alter its approach to the new CEO recruitment process, Hexagon’s board is exploring both internal and external candidates. It is clear that Norbert Hanke will not be permanently appointed, holding the titles of CEO and group chief executive temporarily.
Furthermore, Rollén confirmed that he has no intention of returning as CEO.
“Never in a million years,” Rollén chuckled.
In conclusion, Rollén’s candid assessment of the situation at Hexagon sheds light on the challenges the company faces and the steps being taken to address them. As the search for a new CEO continues, the company remains focused on achieving its strategic objectives and maximizing value for its stakeholders.