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Dutch Multinational Electronics Philips announced the early departure of the current CEO, Frans van Houtenwho will leave his post on October 15 in the hands of Roy Jacobswhich comes in the midst of a crisis due to the withdrawal of some controversial sleep apnea respirators from the market.
Van Houten, who has led the technology group for almost 12 years, is thus six months ahead of his departure from the company’s leadership, during which Philips explained as an agreement between the supervisory board and the executive director. “As the end of his third term nears, it is time for a leadership change,” he said in a statement.
Why is the CEO leaving?
Van Houten’s early departure came unexpectedly, and while the company is still trying to resolve the crisis it was involved in, it recalled about 5.5 million sleep apnea ventilators, after which they were shown to be causing health problems. their users.
Philips found that the devices’ sound-absorbing foam could degrade on contact with certain substances, which initially raised concerns about carcinogenicity, but the company later clarified that the problem was less of a concern than previously thought.
However, the company continues to receive a lot of criticism for its slow recall process and lack of communication with affected customers, while taking these products off the market has cost several million euros in damages. Philipsincluding his fall in the stock market by more than 50%.
“After a thorough assessment of external and internal candidates, the Supervisory Board unanimously decided to propose Roy Jacobs as next president and chief executive officer Philips at the general meeting of shareholders,” the company added.
Jacobs who joined Philips in 2010, he was responsible for the recall of these Philips devices from the market, and over the past decade he has held various positions within the company, currently being the business leader for Connected Care.
Van Houten oversaw three terms in Philips’ transformation from a lighting and consumer electronics giant to a medical and healthcare technology company.
Last May, a majority of shareholders voted against giving Van Houten a €1.8 million bonus for problems with sleep apnea machines and a blow to the company’s reputation. EFE
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Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.