As the carrier deals with fierce competition that puts pressure on pricing and customer growth, Verizon Communications appointed Daniel Schulman as its chief executive officer and lead independent director.
Hans Vestberg, who has been Verizon’s chairman since 2019 and CEO since 2018, will be replaced by Schulman, the company announced Monday. Prior to this, Schulman served as CEO of PayPal from 2015 to 2023 and as the founding CEO of Virgin Mobile USA, helping to establish a significant prepaid cellular company.
Verizon Wireless names lead director as new CEO
Verizon, the biggest telecom company in the US in terms of subscribers, is undergoing this change in leadership while competing for both wireless and home internet users. Monday’s midday trading saw a more than 3% decline in the company’s shares, which have fallen by almost 30% over the previous five years. Schulman informed staff members during an internal call that he intends to raise Verizon’s market value and market share.
Verizon reported losing lucrative postpaid phone customers for the second consecutive quarter in July, despite increasing its annual earnings forecast. Although the company’s outlook seemed promising, Morgan Stanley analysts stated that its shares “traded at a discount to many of its peers, reflecting a more tepid growth outlook.”
Customer focus and acquisition
Verizon froze many customers’ rates for three years earlier this year in an effort to keep customers who were fed up with years of price increases. Although those rate hikes increased revenue, some subscribers were offended. “I fully intend for us to regain our leadership by growing share across all segments of the market, by consistently delighting our customers. At the same time, we must drive financial results that exceed current market expectations,” Schulman said in a message to employees.
Verizon announced a $20 billion deal to acquire fiber-internet provider Frontier Communications, made significant investments in wireless spectrum, and purchased TracFone, a significant prepaid services provider, in recent years. According to a person with knowledge of the situation, Schulman intends to concentrate on increasing customer satisfaction and making money off of Verizon’s current assets.
The board chose Mark Bertolini, the CEO of Oscar Health and a former CEO of Aetna, to be Verizon’s new chairman as part of Monday’s leadership changes. According to Bertolini, Schulman is “the right leader to chart Verizon’s next phase of increased customer focus and financial growth.” Verizon pointed to Schulman’s wealth of leadership experience at major publicly traded corporations as well as his proficiency in technology, finance, and telecommunications.
Instead of pursuing content ownership, Vestberg, the former CEO of Ericsson, focused on bolstering Verizon’s 5G network. In order to assist with Frontier’s integration, he will continue to serve as a special adviser to the company until October 2026. He will also continue to serve on the board until the following annual meeting.
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