Philips Names Company Insider Roy Jakobs As New CEO, Succeeding Frans van Houten

Philips Names Company Insider Roy Jakobs As New CEO, Succeeding Frans van Houten
  • Roy Jakobs is proposed to succeed Frans van Houten as Koninklijke Philips NV PHG CEO effective October 15.
  • Houten's third term as CEO was not due to end until April. 
  • The departure coincided with Philips's massive product recall that has halved its market value over the past year.
  • Also Read: Competitor Recall Continues To Show Opportunities For ResMed
  • Jakobs headed the company's Connected Care businesses.
  • "On behalf of the entire Supervisory Board, I would like to thank Frans for his transformational leadership of Philips over the last nearly 12 years," Chair Feike Sijbesma said.
  • Sijbesma added: "We are pleased to propose to appoint Roy Jakobs as the new CEO of Philips. He has an impressive track record in driving performance improvements and value creation across a broad range of businesses – both within and outside Philips – including in health technology, coupled with extensive global leadership experience across Philips' health systems and consumer businesses throughout the company's transformation."
  • Philips clocked a 7% comparable sales decline to €4.2 billion in Q2. Continued supply shortages and prolonged lockdowns in China led to the decline.
  • Philips stock is still down more than 50% since it shocked investors in June 2021 by recalling 5.5 million ventilators used to treat sleep apnoea.
  • Price Action: PHG shares traded higher by 2.64% at $20.63 in the premarket session on the last check Tuesday.

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