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Alcatel-Lucent announces Chairman Serge Tchuruk and CEO Pat Russo to step down
Board to commence search for new CEO / CEO Russo to remain at helm until successor is named to ensure business continuity / Board of Directors announces plans to reorganize and change composition
To pave the way for a fully aligned governance and management model going forward, the company announced the following changes to its management team and Board of Directors:
- Non-Executive Chairman Serge Tchuruk has decided to step down on October 1, 2008.
- CEO Pat Russo has decided to step down no later than the end of the year, and at the Board's request will continue to run the company until a new CEO is in place to effect a smooth transition and maintain the continuity of the company's business.
- The Board will commence a search for a new non-executive Chairman and CEO immediately.
- The Board is also initiating a process to change the composition of the Board to a smaller group that will include new members.
"The merger phase is now behind us. I am proud that Alcatel-Lucent has become a world leader in a technology which is transforming our society. It is now time that the company acquires a personality of its own, independent from its two predecessors. The Board must also evolve and the Chairman should give the first example, which I have decided to do," said Serge Tchuruk.
"I am very pleased with the progress we are making especially in light of a difficult market environment," said Pat Russo. "Our strategy is taking hold and our results are demonstrating good operational progress. That said, I believe it is the right time for me to step down. The company will benefit from new leadership aligned with a newly composed Board to bring a fresh and independent perspective that will take Alcatel-Lucent to its next level of growth and development in a rapidly changing global market. I have every desire to ensure a smooth transition of leadership within the company and I have informed the Board of my determination to work closely with them until the end of the year or sooner if a successor is named, and we are in agreement on this approach. I have great confidence in Alcatel-Lucent and believe this to be a company with tremendous potential," said Russo.
Now that the company has moved beyond the transitional phase of the merger, the Board has determined to restructure itself in a way consistent with the company's needs going forward. As part of this process the Board will reduce the size of its membership over time while adding several new members with strong industry expertise. To initiate this process, Henry Schacht announced that he will resign from the Board immediately believing that, being a former CEO, he should not remain beyond the transitional stage of the merger. Mr. Schacht was the CEO of Lucent Technologies prior to Ms. Russo becoming CEO in January 2002.
Alcatel-Lucent will host an audio webcast at 1:00 p.m. CET to discuss the leadership changes and the company's second quarter financial results. The webcast can be accessed at http://www.alcatel-lucent.com/2q2008
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