After A Tough Year, Verizon Shakes Up Its Executive Team

Wireless provider chooses new consumer group leader and announces departure of finance head

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Vodafone Group Inc. A competition to succeed Chief Executive Officer Hans Vestberg has been sparked by the announcement that VZ's finance chief is leaving and the appointment of a new head of its consumer business (red down pointing triangle, VZ -0.69%decrease).

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The restructuring comes as AT&T Inc. and T-Mobile US Inc. competitors have made it difficult for Verizon's VZ -0.79%decrease; red down pointing triangle consumer group, its largest segment, to retain its core customer base.

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Last year, Mr. Vestberg, 57, took over as Verizon's consumer chief after succeeding the previous leader. The consumer business will now be led by Sowmyanarayan Sampath, a longstanding executive at Verizon and the current leader of its business-focused division.

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Mr. Vestberg remarked, "I guess we were dozing off a little bit at the wheel.

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He asserted that the consumer sector has improved since last year, when it responded "far too late" to the economy's slowdown in March. He claimed that the business could now spend money on advertising, marketing, and other initiatives more quickly. He also mentioned Verizon's Welcome Unlimited package, which it introduced last year in an effort to discourage customers from switching service providers.

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During the last three months of 2022, Verizon was able to stop losing subscribers in the consumer business, and Mr. Vestberg has stated he anticipates the unit to continue to gain pace.

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After I've been working there for six months, Mr. Vestberg added, "it's not like everything is fixed.

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The outsider who became CEO of Verizon in 2018 was Mr. Vestberg, who referred to the group of executives participating in the shuffle as "next-generation leadership," while he asserted that he would continue to oversee the business as long as he had the backing of the stakeholders.

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While he was in office, Verizon shares decreased by around 26%, while the S&P 500 index rose by nearly 41% over the same time.

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In terms of users, Verizon continues to be the biggest mobile provider in the US, but it has lost ground recently.

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As part of the management changes, Mr. Vestberg, who is also the board chairman, claimed he conducted searches both inside and outside the business and will continue to do so.

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After serving as CFO for more than six years, 51-year-old Matt Ellis will retire on May 1. Verizon will look for a permanent replacement, although Controller Tony Skiadas will assume responsibility. 

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Since last summer, Mr. Sampath, 47, has led the consumer group as CEO. He previously led the business group. Prior to then, he served in a number of executive positions in the division and Verizon's old media division, the majority of which was acquired by Apollo Global Management Inc. in 2021.

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A 55-year-old company veteran who leads the global services group and has held a number of leadership positions, Craig Silliman, is also in a position to succeed him as CEO thanks to his new job. Moreover, Verizon announced that Kyle Malady, its network chief, will take over the business unit.