First Solar Scores With New CEO (FSLR, HON, GE)

First Solar, Inc. (NASDAQ: FSLR) is making a significant management change, right at the top of the company. Mike Ahearn is stepping down as CEO and will be replaced by Robert J. Gillette.  This may come as a shock to many, but  it comes at a time when even a leader like First Solar is having a hard time navigating the difficult climate.  As previously announced, Mr. Ahearn will continue to serve in the full-time position of executive chairman.

Mr. Gillette comes from Honeywell International Inc. (NYSE: HON), where has spent the last four-and-a-half years as the CEO and president of Honeywell Aerospace.  The company said this was Honeywell’s most profitable business group with sales of more than $12 billion annually. It was also noted that Gillette led more than 40,000 associates at nearly 100 worldwide manufacturing and service sites.

Ahearn said that the Board of Directors and the search committee identified and brought Gillette in, and noted that Gillette possesses “a unique combination of skills and experiences that make him an ideal leader for First Solar in the next wave of our growth.”  Gillette joined Honeywell in 1996 and served in a number of senior management positions. His pre-Honeywell career included over 10 years at General Electric Co. (NYSE: GE) in numerous senior management positions.

Gillette will assume the CEO role and become a director with an effective date of October 1, 2009.  Some management changes are good and some are not, but this looks to be one of the good changes.  Because of the size of Honeywell and because of the background of Gillette, we would actually expect this to be viewed as a positive development for First Solar as it faces a more difficult future compared to its shining past.

JON C. OGG
SEPTEMBER 3, 2009