Indianapolis-based Allison Transmission Holdings Inc. has tapped one of its own executives to succeed CEO Lawrence Dewey upon Dewey’s retirement next year.
Allison's board has selected President and Chief Financial Officer David Graziosi, 51, to become CEO effective June 1, 2018, the company announced this week. Dewey’s retirement, effective May 31, 2018, was announced in December.
“I am honored to be selected to succeed Larry as Allison’s next CEO,” Graziosi said in a prepared statement. “As the longest-serving head of Allison in its 100-year-plus history, he established standards and performance that separate the company from virtually any other industrial enterprise.”
Dewey joined Allison in 1989 and has been the company’s CEO since 2007.
Graziosi joined Allison as executive vice president, chief financial officer and treasurer in November 2007, shortly after General Motors sold Allison to investment firms The Carlyle Group and Onex Corp. Allison became a publicly traded company in 2012.
Graziosi was named Allison’s president in January 2016.
“Dave has been instrumental in all aspects of our financial management from day one, and, as he has taken on the responsibilities of president, he has led each of his functional groups to successfully implement a variety of initiatives to improve our business,” Dewey said in a prepared statement.
In a filing with the U.S. Securities and Exchange Commission, Allison said it will determine the terms of Graziosi’s employment, and his compensation as CEO, “at a later date.”
Graziosi and Dewey are both working under employment contracts which took effect in December 2016 and run through May 2018. Under these contracts, Dewey’s base salary is $1 million annually and Graziosi’s base salary is $700,000.
Founded in 1915, Allison makes automatic transmissions for medium- and heavy-duty commercial vehicles. The company has about 2,600 employees worldwide and has a market presence in more than 80 countries.