ABB Gets It Right With The CEO Search, But A Lot Of Work Lies Ahead

Perhaps proving that even a blind squirrel can trip over a nut once in a while, ABB’s (ABB) board of directors made one of the best decisions I’ve seen it make in a long time, announcing on Aug. 11 that it had hired Björn Rosengren to become its next CEO. Mr. Rosengren joins ABB from Sandvik (OTCPK:SDVKY) and will assume the position on February 1, 2020.

I believe Rosengren is precisely the sort of CEO that ABB needs now, and he has relevant experience managing global multi-industrial conglomerates. What’s more, margin improvement and corporate agility are very much needed at ABB these days, and Rosengren’s record here is strong. While investors should recognize that ABB’s performance will likely get worse before it gets better, as the economic cycle turns and a new CEO brings still more disruption to operations, I believe there’s a more credible case now for owning ABB in anticipation of better results down the road.

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ABB Gets It Right With The CEO Search, But A Lot Of Work Lies Ahead