December 12, 2023
Signify Eyes 4-Year Extension for CEO, Eric Rondolat
Company bets on Rondolat's experience to navigate the complexities of global lighting markets
Signify today announced that its Supervisory Board has proposed re-appointing Eric Rondolat as CEO and Chair of the Board of Management at the Annual General Meeting of Shareholders, scheduled for May 2024. The proposed tenure is for four years.
The official shareholder vote, which historically has been a formality, would extend Rondolat’s contract, marking a significant tenure from 2012 to 2028. This period, poised to give him at least 16 years at the helm, has seen the company through transformative times. Recent Board announcements also cite two major executive changes, as CFO Javier van Engelen and CCO Maria Letizia Mariani are preparing to leave in the upcoming months.
“The Supervisory Board is very pleased that Eric Rondolat remains available for a next term,” said Arthur van der Poel, Chair of the Supervisory Board of Signify. “Eric has proven to be a strong leader of the business and will be of great value and importance in continuing to execute on Signify’s strategy in the new customer-centric organization for the coming years.”
Navigating the Lighting Industry's Evolution
Rondolat's tenure started at a pivotal time for Signify, which was then a part of Philips, in 2012. The company was one of the 'Big 3' global lamp makers, alongside OSRAM Sylvania and GE Lighting. At that time, LED technology was rapidly emerging, yet fluorescent and HID lighting remained dominant. Under Rondolat's leadership, Signify skillfully maneuvered through these industry changes, maintaining a competitive edge against rising competitors like Cree Lighting, noted for their aggressive advancement in the LED market.
Upon joining Signify, Rondolat made a bold prediction: LEDs would constitute 50% of the lighting market by 2015. Today, LED-based products comprise nearly 90% of Signify's global sales.
Strategic Acquisitions and Financial Performance
A pivotal moment in Rondolat's leadership was the acquisition of Cooper Lighting in 2020 for $1.4 billion. This strategic move expanded Signify's market reach in North America and diversified its product offerings. In 2022, Signify acquired Austin, Texas-based Fluence for $272 million, bolstering its strength in the horticultural lighting sector.
Signify is significantly expanding its presence in China, demonstrating a strategic commitment to both the Chinese market and to enhancing its global manufacturing capabilities. Earlier this year, Signify opened its largest factory to date in Jiujiang, China. This move, as explained by CEO Eric Rondolat, is crucial for boosting efficiency in manufacturing and logistics, particularly in the struggling consumer division.
In recent years, Signify navigated shifting markets under Rondolat's leadership. The company had EUR 7 billion in sales in 2017, the year after it spun off from Philips. Following this, revenues dipped but recovered after the Cooper Lighting acquisition, climbing to EUR 6.9 billion in 2021 and then to EUR 7.514 billion in 2022. However, the end of 2022 and the beginning of 2023 saw a downturn, with sales declining to EUR 1.6 billion in the third quarter of 2023. This shift prompted strategic restructuring and layoffs, reflecting the need for adaptability in a rapidly evolving market.
The road traveled. The road ahead.
The broader lighting industry has witnessed significant transformations during Rondolat's 11-year tenure at Signify. Notably, OSRAM and GE Lighting experienced ownership changes and restructuring, reflecting the sector's dynamic nature. OSRAM transitioned to Ledvance in North America, while GE Lighting was divided into GE Current and Savant Systems. Cree Lighting has been sold twice. In contrast, under Rondolat's leadership, Signify successfully spun off from Royal Philips, marking a strategic move toward independence and a focus on lighting.
As Signify navigates today's challenging markets, the continuity of leadership may help define the company's future direction, braced with the resilience and adaptability required to steer through global industry challenges.
