Huber is a Portfolio Management Company (PMC). The PMC model is an effective organizational structure for Huber’s diverse range of businesses. In a PMC, unit-specific operating and strategic decisions are made close to the business by dedicated Management Boards for each business.
PMC Benefits for Management and Business Units
In the PMC model, establishing dedicated Management Boards helps decentralize Huber and gives our businesses more independence. Each Huber business is accountable to its own specific Board, which is comprised of directors who are very knowledgeable about the industry in which it competes. Each Management Board consists of three outside directors with relevant industry knowledge, as well as the President of the business and two corporate officers within Huber. The in-depth industry experience of the members of each Management Board greatly improves the quality of governance and decision-making at the business unit level.
PMC Benefits for the Huber Corporate Board
With Management Boards in place devoted to the governance and operational matters at each Huber business, Huber’s Corporate Board can focus on overall portfolio strategy and critical resource allocation decisions. The Corporate Board is better able to concentrate on managing enterprise-wide risks and optimizing Huber’s long-term financing structure to ensure the company has the capital available to support Huber’s future investment needs.
PMC Benefits for Huber Shareholders
The PMC governance model helps strengthen Huber’s legacy of family ownership by providing opportunities for family members, who are the company’s shareholders, to become involved in Huber’s governance. Each Management Board has up to two director seats open to Huber family members. The Huber family has established a process to identify qualified candidates for either a voting or non-voting role on the Management Boards.
With Huber’s businesses operating more independently in a PMC approach, the Huber Principles continue to bring Huber together as one company. Our Principles create a common bond across Huber businesses that serve as the rules of the road for how we conduct business everywhere we operate.