Former RB Global CEO Fandozzi Says Company Misrepresented Reasons For Departure

By Paul Ziobro and Sabela Ojea

Former RB Global Chief Executive Ann Fandozzi said the company misrepresented the reasons for her resignation.

“Rather than respond to misrepresentations and speculate on motivations today, I just want to thank the employees, customers and shareholders who placed their trust in me – they are who matters,” Fandozzi said in an emailed statement, which didn’t detail specifics about what was misrepresented.

A representative for RB Global referred to the company’s press release from earlier on Wednesday and declined further comment.

RB Global, which runs auction sites for commercial assets and vehicles, said earlier Wednesday that Fandozzi and Chief Financial Officer Eric Jacobs had left the company, effective immediately. Operating Chief Jim Kessler was named CEO and the company started a search for a permanent CFO.

The executive changes were due to extensive negotiations with Fandozzi regarding appropriate executive compensation structure, the company said, in which she required the board to approve a front-loaded compensation program that would bring forward five years of equity compensation.

RB Global said the board unanimously determined that such a structure and the magnitude of the payout is far beyond peer group benchmarks and “out of step with market standards.”

In her statement, Fandozzi added: “My focus has been on sustaining momentum while solidifying an all-equity, at-risk incentive program to align management with long-term performance and shareholder value.”

RB Global shares finished down 4.9% at $82.11, after falling as much as 14.2% Wednesday.

Write to Paul Ziobro at [email protected]

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