Nokia replaces chief executive as 5G strategy fails to win over investors
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Nokia today announced plans to replace its chief executive as the Finnish telecoms firm battles escalating 5G costs and fierce competition from rivals.
Rajeev Suri will step down as president and chief executive after more than a decade in the role, and will be replaced by Pekka Lundmark.
Lundmark, who currently leads Finnish energy company Fortum, will start in his new role on 1 September.
Suri had acknowledged a “challenging” year for Nokia, which saw its share price drop by a fifth in October when it downgraded its outlook and cancelled its dividend.
The company admitted it needed to invest more heavily in rolling out 5G as it was unable to get ahead of Swedish rival Ericsson and embattled Chinese competitor Huawei.
Last month the company posted a surprise rise in profit for the full year, but said it would not resume dividend payments until its cash position had improved.
Nokia said that Suri had previously told the board he was planning to step down when a successor had been found.
Risto Siilasmaa, Nokia board chair, said Lundmark had a “record of leadership and shareholder value creation at large business-to-business companies”.
The appointment marks a return to Nokia for Lundmark, who spent a decade at the telecoms giant in various executive positions.
“Together we can create shareholder value by delivering on Nokia’s mission to create the technology to connect the world,” he said.
“I am confident that the company is well-positioned for the 5G era and it is my goal to ensure that we meet our commitments to our customers, employees, shareholders and other stakeholders.”
Suri will remain as boss until the end of August and continue to serve as an advisor to the Nokia board until 1 January 2021.