27.06.2005

Ron Defeo Resigns from United

Ron Defeo, chairman and CEO of Terex has resigned from the board of directors of United Rentals, the world’s largest equipment rental company.

DeFeo indicated that he was resigning to avoid potential conflicts of interest. Bradley Jacobs, chairman of United Rentals, said, "I would like to thank Ron for his service as a director over the past eight years. His knowledge of our industry and various contributions to our board have been greatly appreciated."

The United Rentals board now has 12 members, two-thirds of whom are classified as independent based on New York Stock Exchange criteria.

Vertikal Comment

Terex group companies sell their products to a large number of major rental companies, many of who compete with United. Defeo’s resignation in order to avoid a conflict of interest, is therefore a logical step. One wonders though why now? Having, proved, one assumes, through time served without incident, that his non executive directorship at United need not be a conflict of interest, it seems a little odd to do so now for this reason.