Verizon taps Dan Schulman as new CEO with company at 'critical juncture'

Core Viewpoint - Verizon has appointed Dan Schulman, former CEO of PayPal, as its new CEO, aiming to revitalize the company and enhance its market position in the telecom sector [1][2]. Leadership Change - Dan Schulman succeeds Hans Vestberg, who will transition to a special adviser role until 2026 while Verizon completes its $20 billion acquisition of Frontier Communications [2]. - Schulman has been part of Verizon's ecosystem since 2018, serving on the board and as lead independent director, indicating continuity in leadership [3]. Strategic Direction - Schulman emphasized the need to redefine Verizon's trajectory by increasing market share across all segments and improving key financial metrics [4]. - The company faces challenges such as high churn rates and slowing customer growth due to rising prices and intense competition [4]. Financial Performance - In the second quarter, Verizon reported $34.5 billion in revenue, exceeding consensus estimates of $33.76 billion, with adjusted earnings per share of $1.22, surpassing expectations of $1.19 [5]. - Despite the revenue growth, Verizon added only 300,000 subscribers in the quarter, lagging behind competitors T-Mobile and AT&T, which added 1.7 million and 401,000 subscribers, respectively [5]. Future Plans - Schulman's strategy includes maximizing value propositions, reducing service costs, and optimizing capital allocation, drawing from his experience at PayPal where he significantly increased revenue and customer base [6].