Hexagon: Chairman's successor appears to be in place

Hexagon announced on Wednesday that the company’s Nomination Committee proposes the election of Björn Rosengren as the new Vice Chairman of the Hexagon Board of Directors. The release also stated that Rosengren is planned to be the successor for Hexagon’s current Chairman of Board, Ola Rollen. Hexagon’s stock rose by some 8% during the trading day.

We believe that Björn Rosengren brings credibility to Hexagon, a company that has suffered from a weak economic cycle and some governance concerns over the past 1.5 years. Rosengren was successful as CEO of Sandvik in 2015-20 and as CEO of ABB in 2020-24, delivering cumulative stock returns of around 150% in both positions during his tenure. Decentralization has been a key theme in his previous CEO positions. Improving the decentralized structure could also be relevant at Hexagon, which consists of numerous acquired businesses.

We do not see the announcement having any impact on Hexagon’s short-term performance, but it could sharpen the company’s strategic focus and therefore support value-creation over the long term.