Lee
Local business leaders and analysts were excited about Cummins’ decision to name Jennifer Rumsey as its next chief executive officer, calling the move “historic.”
The Columbus-based company announced Thursday that Rumsey, 48, who has been serving as Cummins president and chief operations officer, would take over as CEO next month, becoming the first woman to hold the position in the company’s 103-year history.
Current Chairman and CEO Tom Linebarger, 59, will continue to serve as chairman of the board and executive chairman, working with Rumsey on “specific initiatives that position the company for continued success.”
Local business leaders called the move “really great” and said Rumsey is “perfectly positioned” to lead the city’s largest employer through a transition to cleaner energy.
“It’s an exciting day, an exciting day for Cummins and an exciting day for Columbus,” said Jason Hester, president of the Greater Columbus (Indiana) Economic Development Corp. “Given the fact that she has Columbus roots, I think the community can be very happy about that, and that she and the family are here in Columbus. …But I think just from a corporate side of it, the business side of it, she’s just very well respected, respected for her technological expertise, as well as her principled, people-focused leadership.”
“It seems like a really great decision by the company, and I think that the community should be very, very pleased,” Hester said.
Cindy Frey, president of the Columbus Area Chamber of Commerce, said her organization has been following Rumsey’s career for a while.
Rumsey was one of the honorees at the Columbus Area Chamber of Commerce Women in Leadership event in 2017, Frey said. At the time, Rumsey was Cummins vice president and chief technical officer.
“She grew up in Columbus, attended our local schools, earned degrees at excellent universities and has ascended to the top job at one of the world’s most well-respected companies,” Frey said. “With her strong technical background, she is perfectly positioned to help Cummins leverage technology as it meets new challenges facing the mobility sector, such as automation and electrification.”
Roger Lee, senior research analyst with Columbus-based Kirr, Marbach and Co., said Rumsey is “definitely qualified” to serve as CEO and “definitely someone that you can expect to deliver.”
Given her age, Lee said, Rumsey has time to bring her vision for the company to fruition.
“She has a long runway to really see it through, and she could be the person that takes Cummins into the next generation of power,” Lee said. “Her tenure can go deep into the next generation of clean air.”
“I think the key is that she comes from the more forward-thinking side of the business, but she’s still very in tune with the legacy business,” Lee added. “…She’s definitely someone that understands both sides of it, both the legacy and the core business, as well as what it takes to be competitive on the alternative-energy side.”
Lee also said it was “tremendous” for Linebarger to stay on as chairman of the board and executive chairman, adding that it is beneficial to have continuity during a transition in leadership.
“Especially in a business as complex as Cummins, you always want to have continuity,” Lee said. “I don’t think anyone doubts that Linebarger knows how to manage the business in the up markets and the down markets. So, with him staying on the board, I think he knows what is in the best interest of all stakeholders and has proven that. Having his oversight, having his experience stick with the company, I think that’s tremendous.”
Jason Hester
Cindy Frey
Lee
