BorgWarner Inc. (BWA, Financial) has announced a significant leadership transition, effective February 6, 2025. Frederic B. Lissalde, the current President and Chief Executive Officer, will retire, and Joseph F. Fadool, currently serving as the Executive Vice President and Chief Operating Officer, will succeed him as the new President and CEO. This transition marks a pivotal moment for the company as it continues to navigate the evolving automotive industry.
Joseph F. Fadool, 58, brings a wealth of experience to his new role, having served in various leadership positions within BorgWarner. His previous roles include Vice President and President and General Manager of Emissions, Thermal, and Turbo Systems, as well as BorgWarner Turbo Systems LLC. The Board of Directors has also appointed Mr. Fadool to join the Board, filling the vacancy left by Mr. Lissalde's resignation.
In conjunction with his new appointment, Mr. Fadool will receive a comprehensive compensation package. His annual base salary will be set at $1,250,000, with a target annual bonus opportunity of $1,875,000, which is 150% of his base salary. Additionally, he will receive a long-term incentive target opportunity of $8,125,000 for 2025 grants and an award of 59,760 additional performance shares for the performance period from January 1, 2024, to December 31, 2026.
During the transition period, Mr. Lissalde will continue to serve as a consultant to the Board, ensuring a smooth handover of responsibilities. His compensation will be adjusted to 67% of his current base salary, and he will not participate in the Management Incentive Plan for periods beginning after the transition date. However, he will be eligible for a pro rata MIP payment for the 2025 performance period.
In addition to the leadership changes, BorgWarner's Board of Directors has declared a quarterly cash dividend of $0.11 per share of the company's common stock. This dividend is payable on December 16, 2024, to stockholders of record as of December 2, 2024, reflecting the company's commitment to returning value to its shareholders.
These strategic moves underscore BorgWarner's dedication to maintaining strong leadership and delivering consistent shareholder value as it continues to innovate and adapt in the automotive sector.
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