Lundmark Pekka (Pekka Lundmark)

Lundmark Pekka (Pekka Lundmark)

Biography

2020: Appointment of Nokia as the CEO

On March 2, 2020 Nokia announced change of the CEO. The Bloomberg agency connects it with the fact that the Finnish company loses Huawei and Ericsson in the market of telecommunication equipment for a 5G networks so far.

Since September 1, 2020 Nokia will be headed by the CEO of the Finnish energy company Fortum Pekka Lundmark, and Rajiv Suri will resign, but will remain in the company at a position of the consultant of Board of Directors until the end of 2020.

After the declaration of change of chapter of the stock of Nokia at the exchange in Helsinki grew in price. During biddings growth reached 4.9%. In 12 last months quotations dropped by 33% in many respects because the company worsened the financial forecast and ceased to pay dividends. Because of it the CEO Rajiv Suri faced serious pressure from investors, and from time to time there were rumors about his resignation.

The markets very much are skeptical about whether Suri will be able to continue the work from the moment of deterioration in the forecast for income last year — the analyst of OP Group Kimmo Stenvall considers. — It could not create and increase the value of the company, especially during an era of a 5G on which he laid great hopes.

According to him, change of the CEO is always long process, and considering the announced Lundmark's appointment, it is possible to assume that search of the new head began for a long time.

Nokia called Lundmark the head who "provides to shareholders stable profitability, successfully updates the strategy of the company and positions it as the strong player".

Change of the CEO of Nokia it was announced in several days after Bloomberg with reference to the informants reported that Nokia attracted consultants to sales research of assets and merge to other company. Besides, according to the agency, options of change of an investment company performance, entering of adjustments into a financial structure, etc. are considered^[1]

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