New Verizon CEO Dan Schulman. — Reuters
NEW YORK: Verizon Communications Inc, conceding it has fallen behind rivals in wireless and broadband service, replaced its chief executive officer (CEO) of seven years, appointing a new leader with experience in telecom and financial technology.
Dan Schulman, 67, who became lead independent director in December, takes over immediately, Verizon said on Monday, with a mandate to revive growth and improve the company’s fortunes.
The former CEO of PayPal Holdings Inc, he replaces Hans Vestberg, 60, a former Ericsson AB executive who has led the company since 2018.
While still the largest US mobile carrier, Verizon has lost hundreds of thousands of subscribers, including 51,000 in the second quarter, to rivals T-Mobile US Inc and AT&T Inc.
The stock has declined about 18% since Vestberg took over, trailing the S&P 500 Index as well as T-Mobile and AT&T.
The shares were down as much as 5.3% on Monday in New York, the worst intraday decline since April, with Schulman promising big changes at the company.
“We are going to maximise our value propositions, reduce our cost to serve, and optimise our capital allocation to delight our customers, and deliver sustainable long-term growth for our shareholders,” he said in a statement.
The new CEO brings a combination of financial and operational leadership experience with large public companies, as well as expertise in telecommunications, technology and finance. — Bloomberg
