January 24, 2025
Eric Rondolat to Step Down as CEO of Signify After 13 Years
Exit announced only 8 months into 4-year contract as shares fell 25% in 2024
Signify CEO Eric Rondolat, the longest-serving leader among publicly traded lighting manufacturers, will step down after the company's annual meeting in April 2025. This will mark the end of a 13-year tenure at the helm, during which he steered the company through transformative industry changes, including its spin-off from Philips and its evolution into a leader in LED and connected lighting technologies.
The timing of the decision is notable, as Rondolat’s four-year contract renewal was approved just eight months ago during the company's annual meeting in May 2024. According to the terms of the contract, a termination requires a six-month notice period, indicating that the decision was likely made in October 2024.
The announcement did not specify the reasons for Rondolat’s departure. Both Rondolat and the Supervisory Board emphasized the amicable nature of the transition, with Rondolat pledging his commitment to supporting the company through the leadership change.
Rondolat’s unexpected exit occurs amidst serious financial pressures. Over the past two years, Signify’s revenue declined by 18%, dropping from €7.514 billion in 2022 to €6.143 billion in 2024. This coincided with a 25% drop in the company’s stock value in 2024, in contrast to double-digit gains in major stock indices.
Terms of Departure and Succession
Under the terms of his contract, Rondolat is entitled to a severance payment equal to his annual base salary of €985,223 if the company initiated his termination. However, if Rondolat voluntarily resigned, no severance applies. As per contractual obligations, Rondolat is also required to resign from all related positions no later than his departure date.
The Supervisory Board has already begun the search for Rondolat’s successor, considering both internal and external candidates. A new CEO is expected to take over following the annual meeting in April 2025. In its announcement, the company expressed confidence in the future, emphasizing Rondolat’s contributions to establishing a solid foundation for continued growth.
Eric Rondolat’s compensation package included an annual base salary of €985,223, along with performance-based incentives such as an annual bonus of up to 80% of his salary and a long-term incentive plan worth 100% of his salary. In 2023, his total earnings, including bonuses, amounted to €2.3 million, which was modest compared to CEOs of similarly sized companies.
Leadership Legacy and Industry Impact
Eric Rondolat, now 58, joined Philips Lighting as CEO of the Lighting sector in 2012, a pivotal time as the lighting industry transitioned to LED technology. His bold prediction that LEDs would account for 50% of the market by 2015 proved accurate, and under his leadership, LED-based products now contribute approximately 90% of Signify’s global lighting sales. During his tenure, he successfully led Philips Lighting's spin-off to establish Signify as the world’s largest pure-play lighting company, listed on Euronext Amsterdam in 2016.
Rondolat’s leadership was marked by strategic acquisitions, including Cooper Lighting in 2020, and by navigating significant challenges such as the COVID-19 pandemic. While other major lighting firms, such as OSRAM and GE Lighting, underwent significant restructuring and selloffs, Rondolat’s steady hand helped Signify maintain its position as an industry leader.
A Pivotal Moment for Signify
As the leadership transition unfolds, questions linger about the timing and impact of Rondolat’s departure. The announcement comes at a time when Signify faces pressure to stabilize its declining financial performance. With revenues and stock values falling, the incoming CEO will need to address these challenges while maintaining Signify’s leadership in the competitive global lighting market.
Rondolat’s departure signals the end of an era for Signify, a company that he transformed into a global leader in the LED and connected lighting era. Whether his successor can build on this legacy and reinvigorate the company’s financial performance will be a key focus in the months ahead.
