Alcatel-Lucent loses pair of execs

Post-merger Alcatel-Lucent isn’t winning over many hearts and minds on Wall Street these days. The company announced the departure of two senior executives last week, both of whom at one point were hand-picked to lead their previously separate companies, according to analysts.
Frank D’Amelio, chief administrative officer, is leaving to accept the position of CFO at Pfizer, and Mike Quigley, president of science, technology and strategy, is leaving to return to Australia, the company said.
“News that two of the merged company’s top executives have resigned can hardly enthuse investors in search of direction and stability after three quarters of derailment and turmoil,” Dresdner Kleinwort analysts wrote in a research note.
“In their current capacities, however, neither Quigley-renowned for his technology insights and project skills-nor D’Amelio-an articulate, numerate and powerful executive-had much influence on Alcatel-Lucent’s operations,” the research team added.
Analysts anticipated Quigley’s inevitable departure after he was passed over for the CEO spot when the companies merged in a $13.4 billion deal last December.
“When we announced the merger of Alcatel-Lucent we acknowledged the breadth and depth of the senior management team and we anticipated that there would be an evolution in leadership responsibilities, which is natural. We are well served with a strong bench of top executive talent that we can draw upon as well as an extensive set of resources that we believe are unrivaled in the industry,” CEO Pat Russo said in a prepared statement.
Etienne Fouques, the current head of carrier business segment, will fall into Quigley’s footsteps as head of science, technology and strategy functions. He will also oversee the services business group. Michel Rahier, head of the wireline business group, will assume the overall leadership of the carrier business segment, which includes the vendor’s wireline, wireless and convergence businesses.
D’Amelio, however, won’t be replaced. The organizations that previously reported to him will now report to other members of the senior leadership team, the company said.
The remaining top leadership all comes from Alcatel, which acquired Lucent in the deal.
Analysts still expect further changes in management.