HOUSTON - Sysco Corporation (NYSE: NYSE:SYY), a prominent global foodservice distributor, announced today that Kevin Hourican, the company's President and CEO, will take on the additional role of Chair of the Board of Directors. The transition follows the resignation of Edward D. Shirley from the chairman position due to personal health concerns. Shirley's departure and Hourican's appointment are effective immediately.
In a statement, Hourican expressed gratitude to Shirley for his leadership and contribution to Sysco's strategic initiatives and for steering the company during the global pandemic. He also acknowledged the support of the Board and emphasized his commitment to creating value for shareholders, customers, and Sysco's workforce.
Shirley, who joined Sysco's Board in September 2016 and became Chairman in January 2020, reflected on his tenure with pride, particularly in the company's governance and value creation efforts. He voiced confidence in Hourican's ability to lead the Board effectively.
Sysco also announced the appointment of Larry Glasscock as Lead Independent Director. Glasscock will act as the main intermediary between the independent directors and the CEO and will preside over meetings of the non-employee and independent directors. With Glasscock's new role, John Hinshaw will take over as Chair of the Corporate Governance and Nominating Committee.
The company, which boasts over 72,000 employees and operates 334 distribution facilities serving around 725,000 customer locations, reported sales exceeding $76 billion for the fiscal year ending July 1, 2023.
This leadership change is reported based on a press release statement from Sysco Corporation.
InvestingPro Insights
As Sysco Corporation (NYSE: SYY) ushers in a new era of leadership with Kevin Hourican at the helm, investors may find solace in the company's strong financial and market position. Notably, Sysco has been a consistent performer in the dividend space, raising its payout for 8 consecutive years, and maintaining payments for an impressive 54 years. This demonstrates a commitment to shareholder returns, a factor that might reassure investors during this transition period.
InvestingPro data reveals a market capitalization of $38.44 billion, reflecting Sysco's substantial presence in the foodservice distribution industry. The company's P/E ratio stands at 18.73, which, when adjusted for the last twelve months as of Q2 2024, shows a more attractive figure of 16.13. This indicates that the company is trading at a low P/E ratio relative to near-term earnings growth, an InvestingPro Tip that suggests Sysco could be undervalued compared to its future earnings potential. Furthermore, Sysco's revenue growth of 5.34% over the last twelve months as of Q2 2024 underscores its ability to increase sales in a competitive market.
Investors looking for stability might also be interested in Sysco's low price volatility, an attribute that can provide a degree of predictability in an otherwise turbulent market. For those seeking deeper insights and additional InvestingPro Tips, such as Sysco's liquidity position and profitability predictions, a visit to Investing.com/pro/SYY is recommended. There, investors can find 9 additional tips to help guide their investment decisions. To enhance the value of a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 for an additional 10% off.
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