in the race for 5G networks, Nokia’s Chief Executive Officer Rajeev Suri will be replaced by Nokia Oyj, after the Finnish maker of telecommunications gear lost ground to rivals including Huawei Technologies Co.
The new CEO of Fortum Oyj, Pekka Lundmark, will start from September after replacing Rajeev Suri. Sari Baldauf will replace Risto Siilasmaa as Nokia’s new chairman in April
for fifth-generation mobile equipment Suri, who is now 52, struggled half-decade tenure as chief to gain a foothold in the all-important market. According to the news of early Monday 4.2% stock was bounced before his departure.
Mikael Rautanen, Inderes analyst says, “the renewal of management is important in the current situation for Nokia to have bigger changes, that’s why change of CEO is a positive beginning.”
when Finnish company was on the cusp of large-scale 5G rollouts Nokia fell behind its rivals Ericsson AB and China’s Huawei.To meet the rivals competition Nokia was forced to buy expensive alternatives of chip sets which did nothing but added to its cost and eroding profits. The Donald Trump’s campaign against Huawei was also failed even.
Bloomberg News reported that, Nokia has begun exploring strategic options, including potential asset sales or mergers, in the fear of competition
Investors have to wait six months before new management take its positions because Suri is asking for patience to his shareholders for company’s 5G implementations.
In October, when 23% off the share price was wiped, Nokia got angry on his investors for not conserving the cash for 5G investment and cut the earnings guidance. Nokia also faced hardship in integrating Alcatel-Lucent, moreover internal politics also disturbed the managers.
“Suri is not been able to add value to the in company in this 5G era. Moreover the market is also very doubtful of Suri that whether he can cope up with the demand of the market competition since the guidance cut last year.” a report by an analyst at OP Group in Helsinki, Kimmo Stenvall.
“Suri, will leave his current position on 31 August. He has been working at Nokia for 25 years, and was appointed CEO after running the Nokia Siemens Networks joint venture.” Nokia said “he will still work as an advisor to the Nokia board until the end of this year.”
Stenvall said, “replacing a CEO in any company is always a length process but in Nokia the announcement of the new CEO Lundmark indicates that this process has been started since long ago. Moreover the current CEO is also involved in searching for the replacement.”
“consistently delivered robust total shareholder returns, successfully renewed the company’s strategy, and positioned it to be a strong player in the transforming global energy sector,” are the achievements in Lundmark career who is now 57. According to Monday’s news from company. Lundmark has also previously worked at Nokia in various executive positions .
In Lundmark career there is also record of doing large deals, such as having engineered Fortum’s $6.9 billion acquisition of German utility Uniper with the help of investors Elliott Management Corp. and Knight Vinke Asset Management.