By TechThop Team
Posted on: 17 Aug, 2022
In a statement, Philips said Van Houten would be replaced by Roy Jakobs, head of the company's Connected Care division, on October 15.
In the midst of a massive recall that has halved Philips' market value over the past year, the Dutch health technology company announced on Tuesday that CEO Frans van Houten is leaving.
Although Philips' third term as CEO wasn't due to end until April, Roy Jakobs, the company's head of Connected Care businesses, would replace Van Houten on October 15.
'Philips' supervisory board and current CEO Frans van Houten have agreed that now is the right time to change leadership after Van Houten's third term has ended,' Philips said in a statement.
In an interview with reporters, Van Houten said he was pleased with the outcome. It's always difficult to let go after 12 years, but it's a logical time to hand over. I'm confident that my successor will build on the foundation I've created.'
Jakobs, who joined the company in 2010, will be appointed CEO at a special shareholder meeting on September 30.
As of early Amsterdam trading, Philips shares are up 2.2 percent, but are still down over 50 percent from their high in June 2021 when 5.5 millions ventilators used to treat sleep apnea were recalled.
As foam for sound dampening degrades, it emits tiny particles that irritate lungs and releases toxic gases that may cause cancer, according to the company.
Philips could have picked an outsider for the top job as a result of this blow to its reputation, but supervisory board chairman Feike Sijbesma said Jakobs was the right man.
'In addition to his international experience, he increased the growth profile of the businesses he led', Sijbesma said.
'As the person who led the production ramp up after the recall, he also has an in-depth understanding of patient safety and product quality, so he is the right choice due to his ability to hit the ground running.'
The 62-year-old Van Houten led the conglomerate as it transformed into a healthcare specialist through the spin-off of its lighting and consumer electronics businesses.
It competes with General Electric and Siemens Healthineers in medical imaging, monitoring, and diagnostic equipment.
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