The board of Allison Transmission Holdings has entered into a new employment agreement with Chairman and CEO Lawrence E. Dewey, 60. The agreement runs to 31 May 2018 when Mr Dewey, intends to retire.
He is the longest-serving head of Allison, who led the company’s transition from its time as a division of General Motors to an independent public company.
The board will consider internal and external candidates for the CEO post in 2018 and will implement a leadership transition plan prior to Mr Dewey’s retirement.
“We are extremely thankful for Larry’s dedicated leadership and we respect his request to retire,” says Thomas W. Rabaut, lead director of the board and chairman of the Nominating and Corporate Governance Committee for Allison.
“He has successfully guided Allison through several periods of significant change and positioned it well for the future. We are confident that the transition plan will be well executed.”
Mr Dewey will be retiring after a 44 year career, which includes serving as CEO since 2007.
As the longest-serving head of Allison in its 100 year-plus history, he oversaw the company’s transition from being a division of General Motors Co., to becoming an independent company with private equity ownership, to offering equity on the New York Stock Exchange in 2012 and, for the last four years, as an independent public company.
“As Allison enters its second century I’m energised about the opportunities that lie ahead for this great company and its talented employees, both in the U.S. and around the world,” said Mr Dewey. “Over the next 18 months, I plan to work closely with the board to ensure a smooth and successful transition of the company’s leadership.”
