3M’s leadership changes
On March 5, 2018, 3M (MMM) announced major changes to its leadership team. 3M appointed Michael F. Roman as its new CEO. Roman is replacing Inge G. Thulin. The changes will be effective from July 1, 2018. However, Thulin will be the executive chairman of the board—a new position.
Thulin, said, “After a thorough and thoughtful succession planning process, Mike is the clear choice to lead 3M into the future as CEO. He is an accomplished, results-oriented and high-integrity leader, with an excellent track record of growing sales, improving operational efficiency and increasing value across a wide range of global businesses.”
Roman has been serving as the COO and executive vice president since 2017. He has been associated with 3M for more than 30 years. He has led 3M’s Industrial segment, which accounts for one-third of 3M’s revenue. 3M is confident that it will continue to grow under Roman’s leadership.
3M’s stock update
3M stock reacted positively to the news. 3M gained 4.8% and closed at $241.35 for the week ending March 9, 2018. The higher stock price caused 3M to trade 2.3% above the 100-day moving average price of $235.97, which resulted in the trend reversal. On a year-to-date basis, 3M has gained 2.5%. General Electric (GE) has declined 14.4%, while Honeywell (HON) and Caterpillar (CAT) have gained 0.6% and 0.4%, respectively.
Investors could hold 3M indirectly by investing in the SPDR Dow Jones Industrial Average ETF (DIA). DIA has invested 6.5% of its holdings in 3M as of March 9, 2018.