Bowing to shareholder pressure in the face of poor performance, Sprint Nextel Corp. Chairman, President and CEO Gary Forsee will step down effective immediately.
The company also pre-released a few metrics for the third quarter and said it lost nearly 340,000 postpaid wireless customers during the third quarter. Sprint Nextel also said that its consolidated operating revenue for 2007 would fall “slightly below” its previous guidance of $41 billion to $42 billion.
According to a company statement, the decision to seek a new CEO “was based on the board’s belief that is it the right time to put in place new leadership to move the company forward in improving its performance and realizing corporate objectives.”
Forsee became CEO of Sprint Corp. in 2003 and led the company through its acquisition of Nextel Communications Inc.-as well as the painful aftermath, which in recent quarters has included an ongoing stream of defecting iDEN customers. Forsee also has championed Sprint Nextel’s push to build a WiMAX network.
An executive search committee has already been formed, and board member and lead independent director Irvine Hockaday said that the search would focus on candidates outside the company.
“We fully expect that the search will be concluded in a timely manner and we are focused on selecting the right candidate to guide the company to achieve its full potential,” Hockaday said. “Sprint Nextel has the assets, spectrum, customer base and technology to be the leader in wireless mobility services.”
Paul Saleh, Sprint Nextel’s CFO, will take over as acting CEO until a permanent replacement for Forsee is named. Board member James Hance Jr. will serve as acting non-executive chairman.
The company will release its full third quarter results on Nov. 1.
Forsee steps down at Sprint Nextel
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