- The Financial Times reported that Verizon has been in touch with potential candidates to replace Sowmyanarayan Sampath
- The current head of the consumer division, Sampath was thought to be in line as the company’s next CEO
- Uncertainty in the wireless industry C-suite is not a positive for the sector, according to New Street’s David Barden
Is Sampath on his way out at Verizon?
According to the Financial Times, Verizon has begun to contact potential candidates to replace Sowmyanarayan Sampath, the current head of Verizon Consumer Group who was widely expected to be the next CEO.
Citing two people familiar with the matter, the Times said Verizon has begun to look for potential replacements for Sampath in recent weeks.
Sampath, who’s been at Verizon more than a decade, led the Verizon Business Group from July 2022 to March 2023, when he was appointed as CEO of the Consumer Group.
One of the Times’ sources said that Sampath had received several offers of new employment but did not yet formalize an exit plan. The source also said Sampath’s exit was not guaranteed.
A Verizon spokesperson declined to comment, saying: “We're not commenting on a story based on speculation and rumors.”
Verizon’s succession plans
This may all come as a surprise because before former CEO Hans Vestberg was ousted in October, the assumption was Sampath would take over when Vestberg was ready to leave. Instead, Vestberg’s departure was abrupt and Dan Schulman, lead independent director on Verizon’s board, took over as CEO.
Given that Schulman’s contract was for 27 months, the narrative went something like this: Schulman was brought in to do some painful layoffs – which he did, to the tune of 13,000 jobs – and eventually, Sampath would become the longer-term CEO.
But it was never guaranteed that Sampath would stick around, or that he was a shoo-in.
Either way, turbulence at the top isn’t seen as great for a company that’s trying to get its mojo back.
“Our view is that even more change, and therefore uncertainty, in the wireless industry C-suite is not a positive for the sector,” New Street Research analyst David Barden said in a note for investors this morning. “Verizon has a lot of wood to chop to make good on ambitious '26E guidance and introduce a new 'value proposition' in the first half. Turmoil at the top complicates this mission.”
The CEO shuffle at Verizon contrasts to that at rival T-Mobile, where the departure of former CEO Mike Sievert was telegraphed well ahead of the appointment of Srini Gopalan, who took over on November 1.
Verizon’s shares were down slightly this morning, trading at $44.39.