Lowell McAdam will step down from the CEO position of Verizon Communications Inc. (NYSE, NASDAQ:VZ) August 1 and intends to retire at the end of the year, the company announced today. Verizon Executive Vice President and President of Global Networks and Chief Technology Officer Hans Vestberg will take McAdam’s place as CEO on August 1. McAdam will become executive chairman of the board on that date to aid Vestberg with the transition to CEO, then become as non-executive chairman upon his retirement.
In a video for Verizon employees, McAdam says the naming of Vestberg as CEO is the result of a two-year process on the part of the company’s board. Vestberg, 52, arrived at Verizon in April 2017, nine months after being ousted from the president and CEO roles at Ericsson. As president of Global Networks and CTO at Verizon, Vestberg has overseen the company’s infrastructure expansion efforts, which include fiber to the premises (FTTP) deployments as well as the current move toward 5G mobile services delivery. The importance of 5G to the company may have helped Vestberg secure his new job.
“I feel it’s really important to sort of let the new guy set the course for 5G,” stated McAdam to Vestberg in a video interview the two conducted for the benefit of Verizon employees. “And with your background, it’s perfect for you to lead the business, because that’s where you’ve lived for your last 28 years, I guess, when you’ve been with Ericsson.”
“We are experiencing unprecedented changes in the way users interact in the digital world, and we are racing ahead to remain at the forefront of technology, connectivity, and mobility,” said Vestberg via a Verizon press release. “I look forward to building on this momentum while continuing to focus on strengthening our customer relationships and driving growth and profitability throughout the business to deliver long-term value. Best of all, I get to do this alongside the greatest team in the business.”
McAdam’s 35-year run with the company includes a tenure as president and CEO of Verizon Wireless from 2007 to 2010. He was named COO of Verizon in 2010, CEO in 2011, and CEO and chairman of the board in 2012.
Shortly after announcing Vestberg’s upcoming new role, Verizon also announced that John Stratton, considered an alternative candidate for the CEO position in his position as executive vice president and president of global operations, has decided to retire as well. His retirement is effective immediately, although he will serve as a strategic advisor to the company. A replacement for Stratton has not been named.
