Compass Diversified (NYSE: CODI) announced that Chief Executive Officer Elias Sabo will retire on December 31, 2026, after eight years in the role. Zach Sawtelle has been appointed Chief Operating Officer and will succeed Sabo as CEO and join the board of directors upon Sabo's retirement.

Sawtelle currently serves as Partner and Chief Operating Officer at Compass Group Management LLC, the company's external manager. He joined Compass Group Management in 2009 and has participated in more than 20 strategic transactions representing over $3 billion in aggregate value, including acquisitions of BOA Technology, 5.11 Inc., and Manitoba Harvest.

"With a clear strategy in place and a focus on disciplined execution, the Board is confident that this is the right time for an orderly leadership transition," said Larry Enterline, Chair of the Board of Directors.

Sabo has been with CODI since its inception and served as CEO for the past eight years. Under his leadership, the company expanded its scale and strengthened its operating capabilities while navigating periods of growth and challenges.

The company reaffirmed its previously announced 2026 outlook, citing strong performance across its diversified group of subsidiaries. CODI remains focused on reducing leverage, maximizing subsidiary value, and driving operational performance.

The company continues its review of the Management Services Agreement, which aims to align incentives with shareholder interests. CODI expects to complete this review in the coming weeks.

Sawtelle holds board leadership positions across several CODI subsidiaries, including serving as Chair of BOA and holding roles at PrimaLoft, The Honey Pot, 5.11, and Altor Solutions. He earned a Bachelor of Science in chemical engineering from UC Davis and an MBA from Northwestern University's Kellogg School of Management.