Alectel-Lucent announced today that both their chairman Serge Tchuruk and their CEO Patricia Russo will be resigning later this year. CEO Russo will remain at helm until a successor is found but that will be before the end of the year, according to the company. Chariman Tchuruk will be resigning effective October 1st.
Both Russo and Tchuruk were the masterminds behind the merger of Alcatel and Lucent in 2006. While they did form a telecom giant, the merger did not produce the results investors were looking for and the stock seems to continue on a downward slope.
Despite this, Russo is very optimistic about the future of the company in her reaction:
I am very pleased with the progress we are making especially in light of a difficult market environment,” said Pat Russo. “Our strategy is taking hold and our results are demonstrating good operational progress. That said, I believe it is the right time for me to step down. The company will benefit from new leadership aligned with a newly composed Board to bring a fresh and independent perspective that will take Alcatel-Lucent to its next level of growth and development in a rapidly changing global market. I have every desire to ensure a smooth transition of leadership within the company and I have informed the Board of my determination to work closely with them until the end of the year or sooner if a successor is named, and we are in agreement on this approach. I have great confidence in Alcatel-Lucent and believe this to be a company with tremendous potential,” said Russo.
Now that the company has moved beyond the transitional phase of the merger, the Board has determined to restructure itself in a way consistent with the company’s needs going forward. As part of this process the Board will reduce the size of its membership over time while adding several new members with strong industry expertise. To initiate this process, Henry Schacht announced that he will resign from the Board immediately believing that, being a former CEO, he should not remain beyond the transitional stage of the merger. Mr. Schacht was the CEO of Lucent Technologies prior to Ms. Russo becoming CEO in January 2002.
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