Pekka Lundmark replacing Rajeev Suri as CEO of Nokia
What's the story
Rajeev Suri, the CEO and President of Nokia, has decided to step down from the top spot by the end of August this year.
He led the company for more than half a decade and will now be replaced by Pekka Lundmark, the outgoing President and chief of Finland's leading energy company Fortum.
Here are more details.
Decision
Suri recently expressed intention to step down
According to Nokia, Suri had expressed the intention of stepping down from the position of CEO a few months ago.
Since then, the Board of Directors of the company and Suri himself had been developing and assessing a list of potential internal and external candidates to ensure a smooth transition.
Finally, they chose Lundmark as the ideal candidate to take over the leadership role.
Details
He will continue till August, remain board advisor till 2021
That being said, Suri will continue with his current role for the next couple of months.
He will leave on August 31, following which Lundmark is expected to take over the charge.
Notably, Nokia says that even after stepping down, Suri will continue to serve as an advisor to the Nokia board by January 1, 2021.
Suri's comment
Suri plans to try something 'different' now
In a statement announcing the decision, Suri said, "After 25 years at Nokia, I have wanted to do something different."
He didn't share specific details but thanked everyone he has ever worked with and noted that "I leave the company with a belief that a return to better performance is on the horizon and with pride for what we have accomplished over time."
Condition
Departure comes as Nokia reportedly explores asset sales, mergers
Suri's departure comes a few days after Nokia was reported to be exploring several strategic options, including selling business assets and potential merger deals.
In 2019, the technology unit of the networking giant had reported a mere 3% growth in operating profits and a 1% decline in sales.
Even the shares of the company have fallen by over a third.
Future
Lundmark is expected to bring things back on track
Now, under Lundmark's leadership, Nokia will strive to become a leader in technologies and products for 5G networks.
Risto Siilasmaa, Nokia Board Chair, said, "We can create shareholder value by delivering on Nokia's mission to create the technology to connect the world. The company is well-positioned for 5G era and it is my goal to ensure that we meet our commitments to our customers."