Good morning. There are extra management modifications within the Fortune 500, with Verizon’s CFO, Tony Skiadas, gaining a brand new strategic associate—Dan Schulman—as chief govt.
Verizon (No. 30) introduced on Monday that its lead director, Schulman, most just lately CEO of PayPal and previously with AT&T and Virgin Cellular, is succeeding Hans Vestberg as Verizon’s CEO, efficient instantly. The corporate reconfirmed its full-year 2025 steerage and postponed the discharge of its third quarter earnings report back to Oct. 29.
Mark Bertolini, Verizon’s chairman, known as Vestberg, in a statement, “a unprecedented chief” who drove community funding and innovation. He stated that with the Frontier Communications acquisition nearing completion, “the board and Hans mentioned that now could be the suitable time for a CEO transition.”
Bertolini acknowledged that Schulman is the suitable chief to information Verizon’s subsequent part of elevated buyer focus and monetary development. Schulman stated in a press release that he’s honored to function CEO, including, “Verizon is at a vital juncture.” Schulman has served on Verizon’s board since 2018 and was elected lead unbiased director in December.
Michael Hodel, director of communications companies fairness analysis for Morningstar, instructed me that Verizon underperformed underneath Vestberg, “not less than within the eyes of many market members.” He continued, “From my view, Verizon has struggled to articulate a transparent technique round market positioning, branding, and pricing, sticking too lengthy to messaging that produced success when it was clearly one of the best community within the business.”
Hodel added that Verizon must adapt to the present market construction and “has did not stay as much as development forecasts underneath Vestberg.” Hodel added: “My guess is that the board was shedding persistence given how the inventory has carried out.”
Scott Simmons, co-managing associate at govt search agency Crist Kolder Associates, commented on Verizon’s announcement: “Vestberg was named CEO in 2018, seven years in the past, and the inventory has not moved in the suitable route the previous few years, which elevated stress from traders,” Simmons stated.
Verizon’s inventory worth has dropped notably since its peak between 2018 and 2020 and is down about 30% over the previous 5 years, reflecting sustained underperformance in comparison with broader market indices. On Monday, the inventory fell by 5% following the announcement that Schulman has changed Vestberg as CEO. Verizon didn’t present additional touch upon the explanation for the CEO change.
Simmons, who has greater than 20 years of expertise in govt recruiting, described Schulman as bringing a recent perspective to Verizon, with management expertise throughout a number of industries, together with telecom and fintech. He famous that Schulman efficiently reworked PayPal, now valued at practically $70 billion. “Schulman is the drive that can change Verizon’s route,” Simmons stated.
Wi-fi business ‘getting into a brand new period’
Ookla’s lead business analyst Mike Dano wrote in a LinkedIn post on Monday: “Broadly, we’re getting into a brand new period within the U.S. wi-fi business, with early 5G buildouts wrapping up and, now, an enormous concentrate on fiber getting underway.”
Verizon is competing with main business gamers, together with AT&T and T-Mobile. In September 2024, Verizon introduced its $20 billion acquisition of Frontier Communications, a number one U.S. fiber broadband supplier. Though Vestberg has stepped down as CEO, he’ll function particular advisor via Oct. 4, 2026, and can oversee the combination with Frontier Communications, which is anticipated to shut within the first quarter of 2026, in keeping with Verizon.
After I asked Skiadas final month what distinguishes Verizon amongst its rivals, he cited the corporate’s funding of about $200 billion in wi-fi spectrum and networks over the previous seven years—nearly $18 billion yearly—to strengthen its community. “That’s actually the hallmark of our firm, after which giving clients selection and suppleness,” Skiadas stated. He turned CFO in 2023 and has been with Verizon and its predecessors for practically three a long time.
Relating to the CEO-CFO dynamic, “I might argue CEOs and CFOs should be strategic companions, or else one thing in that equation is damaged,” Simmons stated. “Information diminishes danger, and the familiarity between a board member, Schulman, and the CFO, Skiadas, ought to clean the trail towards success as strategic companions—assuming a sure stage {of professional} respect exists between the 2.”
Sheryl Estrada
sheryl.estrada@fortune.co
Leaderboard
Massive Deal
Sports activities staff acquisitions are on tempo to set an annual file in 2025, in keeping with S&P Global Market Intelligence. Non-public fairness is driving larger valuations and inspiring long-time house owners to promote.
As of August, mixture deal worth reached $23.6 billion for the 12 months, placing 2025 on observe to surpass the earlier full-year file of $16.6 billion set in 2023.
The 2025 complete contains two megadeals: the $10 billion sale of The Los Angeles Lakers, Inc. introduced in June, and the $4.25 billion sale of the Portland Path Blazers Inc. pending settlement in August.
Going deeper
“AMD inventory jumps on OpenAI deal as Massive Tech seeks to scale back reliance on Nvidia” is a Fortune report by Sharon Goldman.
From the report: “AMD introduced a long-term partnership with OpenAI on Monday that can make it one of many startup’s key chip suppliers for operating its AI fashions. The corporate’s inventory jumped 28% in noon buying and selling on the information of the multiyear deal, which might generate tens of billions of {dollars} in annual income for AMD over time and marks one of many largest AI infrastructure commitments that’s not based mostly on processors from business chief Nvidia.” Learn the complete report here.
