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Philips Announces Imminent Departure of CEO Frans Van Houten, Plans to Change Leadership

Philips Announces Imminent Departure of CEO Frans Van Houten, Plans to Change Leadership

Dutch health technology company Philips on Tuesday all of a sudden announced the impending departure of CEO Frans van Houten, in the middle of a huge item recall that has halved its market price over the past year.Philips stated Van Houten would be replaced on October 15 by Roy Jakobs, head of the company’s Connected Care companies, although his third term as CEO was not due to end up until April.”The supervisory board and present Philips CEO Frans van Houten have agreed that with the end of his 3rd term in sight, the time is right for the modification in management, “Philips stated in a statement.”I’m happy with the result”, Van Houten informed press reporters.

“It’s always challenging naturally to let go, but it is a logical minute to hand over after 12 years. It’s great to be able to turn over to an internal successor with the conviction he will develop on the structure that I have laid.”An unique investor conference will be held on September 30 to appoint Jakobs, who signed up with the business in 2010, as CEO.Philips shares were up 2.2 percent in early Amsterdam trading, but are still down more than 50 percent because it shocked financiers in June 2021 by remembering 5.5 million ventilators used to treat sleep apnoea.Foam used for sound dampening can break down and emit small particles that irritate respiratory tracts, while gases launched by the degrading foam

might also be harmful or bring cancer risks, the business stated at the time.Although this blow to Philips’track record might have led it to select an outsider for the top task, supervisory board chairman Feike Sijbesma stated Jakobs was the right

guy to fix the business’s problems.”He has substantial global experience and he increased the growth profile of the businesses he led”, Sijbesma stated.” He led the ramp up of production following the recall and

understands quite about patient security and item quality, so also from that point of view he is the right person.

He can strike the ground running.”During his practically 12 years at the helm, 62-year old Van Houten led the change of the once-sprawling corporation into a focused healthcare specialist, spinning off its lighting and consumer electronics divisions.Philips now focuses on medical imaging, monitoring and diagnostic devices and completes against General Electric and Siemens Healthineers. © Thomson Reuters 2022

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