Dutch company Philips announced that on October 15 the current head of Philips Frans van Houten will be replaced by Roy Jacobs. This decision of the board of directors still has to be approved at the extraordinary meeting of shareholders on September 30th.
Media that published the news regarding the upcoming change in leadership, including the agency Archyde.comcalled the announcement of Mr. van Houten’s imminent departure “unexpected”, while noting that it came in the midst of a massive recall and following the company’s stock had fallen nearly 50% since June 2021.
Frans van Houten joined Philips in 1986. In 2002, he rose to the position of co-head of the consumer electronics division, in 2004 he became the head of Philips Semiconductors, and since 2010 he has headed all of Philips. This year marks the end of his third term as CEO of a Dutch company. Commenting on the upcoming departure from his post, Mr. van Houten said: “Of course, it is always very difficult to leave following so many years of building a company and putting all of yourself into it. But this is a planned stage, it is quite logical to transfer leadership following 12 years.”
Roy Jacobs joined Philips in 2010. After holding several leadership roles across the company, in early 2020, he took over as head of a team dedicated to advising and serving patients and clients during the pandemic. And in 2021, he handled a major recall of breathing apparatus, ventilators, and sleep apnea devices. Then Philips announced regarding the recall of regarding 4 million such devices due to “identified potential health risks” in their use. The board of directors of the Dutch company called the candidacy of Roy Jacobs “ideal in order to raise Philips to a new level of activity.”
Shares of Philips reacted to the news regarding the change of the CEO by growth by 4.28%. Since the beginning of the year, the company’s shares have fallen by 39%.
