Wednesday Mar 29, 2023

In Midst Of A Massive Recall Philips Sacks CEO Franz Van Houten

In Midst Of A Massive Recall Philips Sacks CEO Franz Van Houten

In the wake of a massive medical device recall Philips CEO Franz van Houten will leave the company in October after a key product recall the Dutch healthcare firm. Philips market value has reduced by more than half over the past year.

Philips CEO Franz van Houten will stand down following Tuesday’s announcement. The company is undergoing a massive product recall that has halved its market value over the past year. The company said Van Houten will be replaced by Roy Jacobs in October who is currently heading Philip’s connected care businesses.

Franz Van Houten’s third term as CEO was not due to end until April 2023. He has claimed that he was happy with the outcome of the company’s decision and that now was a logical moment to hand over. A special shareholder meeting will be held on September 30th to appoint Roy Jacobs as CEO. Philip’s shares were up close to 3% by early afternoon in Amsterdam. However, those same stocks are still down more than a half since the company shocked investors in June 2021 by recalling close to five and a half million ventilators used to treat sleep apnea. Philips said foam used in the devices was defective and could degrade and emit dangerous gases. Franz Van Houten had led the transformation of once sprawling conglomerate into a focused healthcare specialist. He spun off its lighting and consumer electronic divisions during his time in charge of Philips.

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