On February 14, 2008, Cummins Inc. (NYSE: CMI) announced the appointment of Robert Herdman to its Board of Directors. A former chief accountant at the U.S. Securities and Exchange Commission (SEC), Herdman currently serves as executive director of Kalorama Partners LLC. As the tenth member of the board, he is responsible for leading the Audit, Finance, Technology, and Environmental Policy Committees. His extensive background in financial regulation and corporate governance brings valuable expertise to the board.
Mr. Herdman previously served as chief accountant at the U.S. Securities and Exchange Commission from October 2001 to 2002, where he played a key role in shaping financial reporting standards. He also worked as a senior advisor to the U.S. Financial Accounting Standards Board and the Auditing Standards Board. Before joining the SEC, he held executive roles at Ernst & Young International, where he gained deep insights into global financial practices and auditing procedures.
In addition to his role at Cummins, Mr. Herdman is a director at HSBC Group Financial Corporation, further highlighting his influence in the financial sector. His diverse experience across government, accounting, and multinational corporations makes him a strategic asset to the board.
The Cummins Board of Directors plays a critical role in overseeing the company’s major operations and guiding its long-term strategy. Comprised of individuals with strong ethical values, professional expertise, and a commitment to excellence, the board ensures that Cummins maintains sound business judgment and strategic direction.
In October 2005, the Cummins Board convened in China for the first time outside North America, marking a significant milestone in the company’s global expansion. This decision underscored the growing importance of the Chinese market in Cummins’ international strategy.
The board consists of ten members, including Tim Cusso, chairman and CEO, Joe Loughrey, president and COO, and other industry leaders such as former U.S. officials and executives from major corporations. The board emphasizes diversity and includes individuals with varied backgrounds, ensuring a well-rounded approach to decision-making.
Cummins has been active in China since 1975, when Erwin Miller, then-chairman of the company, became one of the first American entrepreneurs to explore business opportunities there. Over the years, the company has grown significantly, establishing 21 facilities in China, including 14 joint ventures and wholly-owned subsidiaries. It employs over 5,400 people and produces a wide range of products, including engines, generators, and filtration systems.
Cummins was also the first foreign diesel engine company to establish an R&D center in China. In 2006, it opened a joint research facility in Wuhan with Dongfeng Corporation, further solidifying its commitment to innovation in the region.
By 2007, Cummins had achieved sales of over $1.7 billion in China, representing a 50% increase from the previous year. This growth positioned China as one of the company’s fastest-growing and most important overseas markets.
Founded in 1919 in Columbus, Indiana, Cummins is a Fortune 500 company and a global leader in power solutions. It designs, manufactures, and distributes engines and related technologies, serving customers through a vast network of distributors across 160 countries. With over 38,000 employees worldwide, the company reported sales of $13 billion in 2007, with 54% of revenue coming from international markets.
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