Verizon Appoints Former PayPal Chief as New CEO

The leadership shake-up comes as Verizon pursues a $20 billion acquisition of Frontier Communications.

Dan Schulman, former CEO of PayPal, speaks at the Viva Technology event dedicated to start-up development, innovation and digital technology, in Paris, on June 16, 2017. Geoffroy Van Der Hasselt/AFP via Getty Images

Verizon Communications has appointed Dan Schulman, the former chief executive of PayPal Holdings, as its new CEO, the company said in a statement on Oct. 6.

Schulman succeeds Hans Vestberg, who will remain at Verizon Communications in an advisory role during a two-year transition period.

The board of directors said in the statement that Schulman will assume the job effective immediately.

At the same time, Verizon announced that Mark Bertolini, a veteran director and former chief executive of Aetna, has been named chairman of the board of directors.

“The Board is thrilled to have Dan as Verizon’s next CEO, and embark on a new chapter of growth and sector leadership,” Bertolini said in a statement.

Bertolini described Schulman as “a seasoned and decisive leader with a unique set of experiences and a proven record of transformative leadership and operational excellence.”

Schulman has previously held senior leadership roles at AT&T, Priceline, Virgin Mobile, and American Express. He has also served on the Verizon board of directors since 2018.

The leadership change occurs as Verizon’s planned $20 billion acquisition of Frontier Communications moves through the regulatory process.

It also lands at a time in which the company is contending with fierce competition from AT&T and T-Mobile in a wireless market that slowed earlier this year amid heavy promotions.

Growth Challenge

Over the past five years, Verizon shares have fallen on the New York Stock Exchange by about 28 percent. In April, however, Verizon reported first-quarter operating revenue of $33.5 billion, up 1.5 percent from a year earlier. Verizon also expects total wireless service revenue to grow this year from 2 percent to 2.8 percent.

Schulman welcomed his new role and said Verizon was at a “critical juncture.”

“We have a clear opportunity to redefine our trajectory by growing our market share across all segments of the market, while delivering meaningful growth in our key financial metrics,” he said.

“We are going to maximize our value propositions, reduce our cost to serve, and optimize our capital allocation to delight our customers and deliver sustainable long-term growth for our shareholders.”

A man on his cell phone walks past a Verizon Wireless store in Washington on Dec. 30, 2014. Jim Watson/AFP via Getty Images

Verizon said Schulman brings valuable industry experience, noting that as PayPal’s CEO, he grew the company’s revenue from $8 billion to $30 billion, increased profits per share fivefold, and added hundreds of millions of new customers worldwide.

Frontier Deal

Verizon announced on Sept. 5 plans to acquire Frontier Communications in an all-cash deal, valued at $38.50 per Frontier share. The deal is expected to close in about 18 months, pending shareholder and regulatory approvals as well as other standard conditions.

In the statement, Verizon described the transaction as a strategic acquisition of the nation’s largest pure-play fiber internet provider. The company said the move would significantly expand its fiber footprint nationwide and support future digital innovations in areas such as artificial intelligence and the Internet of Things.

Vestberg said with the pending acquisition of Frontier, it was the right time to hand over leadership.

“As the Board and I discussed, with the pending acquisition of Frontier, it is a good time to pass the baton to Dan. I do this with immense pride and deep gratitude. Verizon’s future is in excellent hands, and I’ll be cheering the team on every step of the way,” he said in a statement.