AutoNation Inc. is launching a search for a new CEO as longtime leader Mike Jackson prepares to move into a new role as executive chairman of the country’s largest new-vehicle dealership group.
Jackson, who will turn 70 in February, will continue in his current position as chairman, CEO and president during the succession process, the company said Wednesday. Jackson, who has been AutoNation’s chief executive since 1999, is expected to transition to the executive chairman position next year. AutoNation has extended Jackson’s contract through 2021 in that role.
The announcement means Jackson will shed the CEO title a lot earlier than he once indicated. He previously had said he wanted to run AutoNation for as long as friend and competitor Roger Penske ran rival Penske Automotive Group. Penske was 76 at the time Jackson made the comments.
The move comes 10 months after Jackson wrapped up a five-year overhaul of AutoNation’s strategy to position the retailer for the long-term future. Those steps included putting the AutoNation name on most of the company’s stores; setting up AutoNation Express online storefronts; launching standalone used-car outlets; branding parts, accessories and finance-and-insurance products with the corporate moniker; and servicing Waymo self-driving vehicles.
Jackson referenced those actions in Wednesday’s announcement.
“The company is ready for its next chapter with a strong foundation, a coast-to-coast brand, a comprehensive brand extension strategy and a transformational digital consumer car-buying experience,” Jackson said. “While the board commences their succession process, we will remain focused on delivering a peerless customer experience and executing our brand extension and digital strategies.”
AutoNation’s stock hit a new 52-week low of $42.87 in mid-day trading Tuesday before closing at $43.09 per share. Its 52-week high is $62.02. The shares rose 1.9 percent to close at $43.91 on Wednesday.
Executive search
AutoNation’s board of directors has retained executive search firm Spencer Stuart to help find a new CEO. The company said it will consider both internal and external candidates.
Jackson’s current top lieutenant is COO Lance Iserman, a 17-year AutoNation veteran who has been in that post since June 2017. Iserman is the retailer’s third COO since 2015. Jackson’s longtime No. 2, Michael Maroone, stepped down from that position and retired in early 2015. Maroone was replaced by long-serving AutoNation executive Bill Berman, who then left the company in May 2017.
At the time of Iserman’s promotion last year, Jackson noted that the move didn’t mean his new COO would have the inside track to the CEO job. Jackson told Automotive News then that the company would consider AutoNation’s entire leadership team to replace him when he retired, as well as candidates from the outside.
