The Dutch Philips unexpectedly announced on Tuesday (16) the departure of Chief Executive Frans van Houten, amid a large recall of products that halved their market value last year.
Philips said Van Houten will be replaced on October 15 by Roy Jakobs, head of the company’s Connected Care business, before his third term ends in April.
“The supervisory board and current Philips Chief Executive Frans van Houten have agreed that with the end of his third term in sight, the time is right for a change in leadership,” Philips said in a statement.
A special shareholders meeting will take place on September 30 to nominate Jakobs, who joined the company in 2010.
Philips shares are up about 2% in Amsterdam but are still down more than 50% since it shocked investors in June 2021 by recalling 5.5 million pieces of equipment used to treat sleep apnea.
The foam used to insulate sound can degrade and emit particles that irritate the airways, while the gases released by the foam can also be toxic or carry cancer risks, the company said at the time.
While this blow to Philips’ reputation could have prompted it to choose an outsider for the top job, supervisory board chairman Feike Sijbesma said Jakobs is the right man to solve the company’s problems.
“He has extensive international experience and has raised the growth profile of the businesses he has led,” said Sijbesma.
Philips now focuses on diagnostic imaging, monitoring and diagnostic equipment and competes with General Electric and Siemens Healthineers.
Source: CNN Brasil
