After five years at Sprint’s helm, CEO Dan Hesse’s effectiveness is being called into question. While Hesse and his team have managed to stall subscriber defection, revenue continues to decline. With flops in Clearwire, WiMAX, LightSquared and a risky $15.5 billion gamble on Apple’s iPhone, Sprint investors fear the CEO may not have what it takes to lead the company against AT&T and Verizon Wireless in an industry that regulators fear has already grown too concentrated. Big investors have voiced strong concerns that the company’s management, led by Hesse, isn’t up to the job, The Wall Street Journal reported on Monday. Dragos Stefanescu, a director for the Ontario Teachers’ Pension Plan, sharply criticized Mr. Hesse at a lunch meeting in Boston last year, voicing his concerns about Sprint’s complicated network plan. The Journal’s sources, however, claim that the board remains confident in Hesse, though their close watch over every move the CEO makes suggests otherwise. “The board has been stunningly engaged,” one person said. “It sort of has to be because the company’s not doing well.” More →
Apple has named Arthur D. Levinson as chairman of the board, filling the role that Steve Jobs held previously. Additionally, Bob Iger, CEO of The Walt Disney Company has joined as a board member. Apple’s full press release is after the break. More →
Apple’s board of directors has been in informal talks with executive recruiting firms and has been discussing a successor to CEO Steve Jobs, The Wall Street Journal reported on Tuesday. Reportedly, the board has also met and talked with “at least one” head of a “high-profile tech company” as a possible successor, although it’s unclear who that person is. The Wall Street Journal also noted that it wasn’t immediately clear if Steve Jobs had been aware of the search or if Apple has been looking behind his back, though he emailed The Wall Street Journal in response to their questions about the discussions: “I think it’s hogwash.” Steve Jobs has been on medical leave from the Cupertino-based firm since January of this year. More →
Despite agreeing to address concerns over the shared Co-CEO and Co-Chariman roles held by Research In Motion bosses Jim Balsillie and Mike Lazaridis, the company again finds itself in hot water after a report from proxy advisor Glass Lewis & Co. was obtained by Bloomberg on Thursday. RIM announced in June that it would assemble a committee of independent directors to study the CEO and board roles, and then make recommendations as to whether or not the company should consider splitting the CEO and Chairman roles Balsillie and Lazaridis each currently hold. In its report, Glass Lewis wrote that the move was merely a stall tactic used to get Northwest & Ethical Investments LP to withdraw a motion it intended to put forward at RIM’s July shareholder meeting. “The appointment of independent board leadership does not require further study, but rather concrete action,” Glass Lewis analysts noted in their report. “While we commend the board for actively engaging with NEI in an attempt to reach a mutually agreeable solution, we are underwhelmed with the board’s continued avoidance of a commitment to appoint an independent chairman.” More →
Clearwire on Thursday announced that CEO and director of the board Bill Morrow will resign effective immediately. Morrow cites personal reasons for his resignation and he will continue to serve as an advisor to the company while the interim CEO, chairman of the board John Stanton, transitions into his new role. “I would like to commend Bill for his tremendous leadership in building the first U.S. 4G network, adding more than 5 million subscribers, and raising funds in a challenging economic environment,” Stanton said in a statement. “Bill built a strong leadership team which enables us to promote Erik Prusch and Hope Cochran to new roles. Together, the entire management team at Clearwire remains focused on delivering value to its customers and shareholders.” Two other top Clearwire executives, Chief Information Officer Kevin Hart and Chief Commercial Officer Mike Sievert, will be leaving the company as well. Hit the break for the full press release. More →
A popular topic of discussion lately in every corner of the Web has been Eric Schmidt’s position on Apple’s Board of Directors and the many possible conflicts it now presents. While opinions have varied, most take the stance that Google’s business has begun to overlap with Apple’s in too many key areas and as such, Schmidt’s role with the company is no longer appropriate. Well, the debate is over. Apparently, Google’s CEO and the Cupertino crew finally came to their senses. Steve “Thanks for Picking Our Brains and then Trying to Eat Our Lunch” Jobs had this to say:
Eric has been an excellent Board member for Apple, investing his valuable time, talent, passion and wisdom to help make Apple successful. Unfortunately, as Google enters more of Apple’s core businesses, with Android and now Chrome OS, Eric’s effectiveness as an Apple Board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest. Therefore, we have mutually decided that now is the right time for Eric to resign his position on Apple’s Board.
So long Dr. S, you will be missed — unless Chrome OS somehow manages to beat the odds and outreach OS X’s market share at some point down the road. Then we imagine pretty much no one at Apple will miss you.
Since the passing of founder and CEO Ted Rogers in early December, Rogers Communications, which owns both Rogers Wireless and Fido, the sole two GSM carriers in Canada, has been without a permanent leader until a couple days ago when the Board of Directors appointed 52-year old Nadir Mohamed as the CEO. Said Alan Horn, Chairman and interim CEO prior to the appoint of Mohamed:
Nadir was the unanimous choice of our Board of Directors to succeed Ted as RCI’s President and CEO. He is a highly regarded, principled telecom executive who has the demonstrated ability to build and lead strong teams and to consistently deliver strong results. Over the past eight years Nadir has earned the respect of our Board, our employees and the investment community. The Board believes Nadir’s skills, experience, track record and firm understanding of the industry uniquely position him to lead Rogers through the next chapter in its history. We all congratulate Nadir and look forward to working with him in his expanded leadership role.
So just what is Mohamed’s priority as he begins his time as CEO?
Looking forward, we will build upon this solid foundation by driving continuous improvements to our customer experience, by improving the efficiency of our operations through cost and capital management, and by delivering innovations and deploying leading edge technologies to meet the changing needs of our customers. With our strategy and asset base both firmly set, I look forward to working together with our Board, management and employees in leading Rogers through its next era and continuing to create significant value for our customers and shareholders.
Okay, it’s pretty much your average boilerplate statement, but seeing as Mohamed has a reputation of being quite the aggressive and cunning businessman, we actually believe that he will deliver on his word.