TDNot sure I agree with the slight negative slant as I believe that she was being groomed to be the next CEO at CIBC and her departure was a shock. Their loss could be our gain. TD currently has a $22.00 target. GLTA
Element Fleet Management Corp.
(EFN-T) C$19.41
CEO Succession Earlier than Expected
Event
Jay Forbes Retiring; Laura Dottori-Attanasio to Succeed as Next CEO
Impact: SLIGHTLY NEGATIVE
Yesterday after market close, Element Fleet Management announced that current CEO, Jay Forbes, is retiring in May 2023. The Board has appointed former senior bank executive, Laura Dottori-Attanasio, as the next CEO. Initially Ms. Dottori- Attanasio will join Element as President on February 15, 2023, until assuming the CEO role on May 10, 2023. Mr. Forbes will continue to serve as a strategic advisor to Ms. Dottori-Attanasio and the Board for a two-year period.
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Our initial take is slightly negative, given Mr. Forbes has developed a strong track record leading Element. Mr. Forbes executed well in transforming the business after joining in June 2018. More recently, he has subsequently led the business to deliver record revenue, earnings, and FCF (2022-to-date). We take some comfort from the fact that Mr. Forbes will continue on in a strategic advisor role. We also believe the timing for CEO succession is reasonable, given the firm has a strong momentum.
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Ms. Dottori-Attanasio is coming from a Big-Six Canadian bank, where she has had several senior roles over the past 14 years. Most recently, she was Senior Executive Vice-President, and Head of Personal and Business Banking. Element's Board appears to have undergone a broad and thorough search process (both internal and external candidates, launched in 2022). The Board believes Ms. Dottori-Attanasio's background in credit, funding, and leading a service-focused division of a large organization makes her a good fit for the CEO role. Cultural fit with existing executive team was also an important consideration.
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We would reiterate that, in our view, the recent investor day (November 2022) illustrated management depth at Element, and the company's confidence in maintaining its commercial and operational momentum. We also believe the healthy order backlog (3x normal levels) will support the medium-term growth outlook, and positions Element well in a potentially slowing macro environment.