Noting that execution may not be his “natural strength,” Alcatel-Lucent CEO Ben Verwaayen says he will not renew his contract with the company, which terminates in May. Verwaayen has been at the helm of Alcatel-Lucent since 2008; he assumed the top spot two years after the merger of Alcatel and Lucent Technologies.
During the years since the merger, Alcatel-Lucent has accumulated more than $13 billion in losses. Today the company reported a loss of $1.8 billion, due entirely to a $1.9 billion asset impairment charge. Revenue was $5.5 billion, down 1.3% from the fourth quarter of 2011. Alcatel-Lucent’s American depository receipts were trading down more than 6% Thursday on the New York Stock Exchange.
For all of 2012, Alcatel-Lucent reported a healthy increase in revenue from IP products, but saw declines in revenue from wireless products and optics products. Revenue from wireline products and revenue from services were basically flat in 2012.
The company says it has retained executive search firm Russell Reynolds Associates to assist with its search for a new CEO.
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