Jacobs To Step Down As United Rentals CEO

Oct. 1, 2003
United Rentals chairman and CEO Bradley Jacobs announced this week that he will step down as chief executive officer Dec. 31, but will remain involved

United Rentals chairman and CEO Bradley Jacobs announced this week that he will step down as chief executive officer Dec. 31, but will remain involved as executive chairman in the company he founded with six others in 1997.

Wayland Hicks, currently vice chairman and COO, will succeed Jacobs as chief executive officer on Jan. 1. John Milne, president and CFO, will continue in his current positions.

“I’ve been a part of a great management team here at United Rentals and I’m ready to do it again,” Jacobs told RER in an interview this morning. “I’m looking for that next opportunity to create a large amount of value in another huge industry.”

Jacobs says he is prepared to invest $100 million of his own capital into his next venture, though the details of his new endeavor are still undecided. Jacobs outlined to RER three options he’s considering: another acquisition-based business plan in a large market sector; a roll-out-type business that is successful in one area and can be duplicated with cold-starts in many different regions across the country; or a turn-around situation, a scenario in which a company with healthy growth potential is in need of new management to breathe life back into it. “Now that I’ll have more time on my hands I’ll be able to do some more research into other opportunities,” he says.

Jacobs will continue to work on training programs in place at United Rentals, including teaching a couple courses to new branch managers. He also plans to stay involved in the company’s campaign to raise rental rates across the industry. “If my legacy is anything, I’d like it to be that I started the industry on the way to raising rental rates to where they should be,” he says.

Jacobs also plans to remain the largest private shareholder in the company, with more than 10 million shares and options to his name.

“I’m gratified that the company we started around my dining room table six years ago has grown into North America’s leading equipment rental company. It has been a privilege to help build United Rentals. “I will be leaving management of the company in the hands of two friends and colleagues who have been instrumental to United Rentals’ success. Wayland and John have been with the company since 1997 and know every aspect of our business. I anticipate a seamless transition.”

The company also announced the promotion of Michael Kneeland to the newly created position of executive vice president-operations. Kneeland is currently vice-president-southeast region. He joined United Rentals in 1998, serving first as district manager and then as vice president-aerial operations. His 25 years of experience in the equipment rental industry includes senior management positions at Freestate Industries and Equipment Supply Co.

Jacobs founded United Rentals with Milne and six others in 1997, and has served as the company’s chairman and CEO since its formation. Jacobs previously was chairman and CEO of United Waste Systems, which he founded in 1989. United Waste Systems was the fifth largest solid waste management company in North America when it was sold in 1997.

Hicks joined United Rentals as chief operating officer in 1997, and became a director and vice chairman in 1998. Hicks previously held senior executive positions at Xerox Corporation, including executive vice president-corporate operations, executive vice president-corporate marketing and customer support operations, and executive vice president-engineering and manufacturing. He is director of Maytag Corporation.

Greenwich, Conn.-based United Rentals is No. 1 on the RER 100.