Ed Zander Resigns as Motorola CEO
November 30, 2007 | by Geoff Duncan
As sales tumbled as the success of the RAZR waned, Motorola's CEO Ed Zander is stepping down January 1, to be replaced by current COO Greg Brown.
Although Motorola rode a two-year high-profile success with its sleek RAZR phone, the company has dropped to third place among mobile phone makers, and turned in doleful financials for the first half of 2007—and although the third quarter wasn't to bad, it still represented a 94 percent drop in profits. Today, however, Motorola's stock buoyed up a bit: CEO Ed Zander announced he would be stepping down January 1, to be replaced by current Chief Operating Office Greg Brown. Zander will continue in his role as chairman of the company's board until at least the company's annual shareholder meeting in May 2008, and as an advisor to the CEO through January 5, 2009..
"Next year marks my 40th year in the technology industry," said Zander in a release. "This is the right time for me to move on to the next phase in my life and spend more time with my family. I am grateful I had the opportunity to lead Motorola over the last four years. It's been a wonderful experience."
Brown joined Motorola in 2003 and has served as COO since March; prior to Motorola, he was chairman and CEO of network management firm Micromuse.
Although Motorola's third quarter numbers may indicate a financial turnaround is already underway, Brown will have his work cut out for him: the company's mobile phone business (Motorola's largest business unit) just rang up an operating loss of $138 million on $4.5 billion in sales during the third quarter, with a 36 percent decline in sales. Although those figures represent an improvement from the $264 million the unit lost in the second quarter, they're still significant decline from the hey-day of the RAZR, when the unit was pulling in around $5.5 billion in sales.
"The Board is delighted that Greg will serve as CEO," said Samuel C. Scott III, lead director of Motorola's board, in a statement. "We are confident that he will bring a combination of strategic insight, operational discipline, and inspirational leadership needed for accelerated and sustained growth."
Post Your Comment...Comments
Patty McElhoes on Dec 15th, 2007 at 10:50 AM:
Dear CEO,
I am not satisfaied and very discussed with the customer service I have recieved for the repair and return of my camera.. It was sent and got to the Palisades New Jersey repair center, and every time I called to find out what was going on, I get the run around and games from the people in the customer service dept. They tell me the same thing each time, and it was to be at my door yesterday, when I spoke to a gentlmen Mark last week. I called today, and then they say, no it was shipped today and I will get it next week. I make very little money, and to save up to purchase your product and it not to work 2mnths after I get it, and then to get mind games on my camera, made me so mad, If I do not get it in time for xmas, to take pictures of my son, I am going to proceede with my attorney, and the charges are going to be more then what the camera was. I had to spend over 30.00 in digital batteries, the chip was 20.00 and 100.00 plus tax on my charge card for the camera. I will be asking for that back on my card as well. you have to understand, would you not be furious if you made very little money, and you called and got the run around? Yes, you would. Please, do something with your customer service.. Very Angry Samsung camera customer.... Patty.......
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adam hartung on Nov 30th, 2007 at 3:20 PM:
When Zander showed up Motorola was in dire shape. He made huge strides in helping a moribund organization return to innovation and growth. If the company retrenches to old management styles things could get much worse before they get better. Read more at http://www.thephoenixprinciple.com