LONDON: Verizon Communications Inc (VZ.N) on Tuesday named Dan Schulman, the former chief executive of PayPal Holdings Inc (PYPL.O) and a current board member, as its new chief executive officer, effective immediately, in a surprise leadership overhaul.
The U.S. wireless carrier said longtime CEO Hans Vestberg would step down and serve as a special advisor until late 2026 to ensure a smooth transition, including the integration of the pending $20 billion acquisition of Frontier Communications.
Schulman, who has served on Verizon’s board since 2018 and was its lead independent director, brings a mix of telecom, technology, and financial services experience from his time leading PayPal, AT&T Inc (T.N), and American Express Co (AXP.N).
The board also elected former Aetna CEO Mark Bertolini, another Verizon director, as its new chairman.
“Dan is a seasoned and decisive leader with a unique set of experiences, and a proven record of transformative leadership and operational excellence,” Bertolini said in a statement. “He is the right leader to chart Verizon’s next phase.”
The change at the top comes as Verizon, which has faced intense competition in the mature U.S. wireless market, seeks to reignite growth. Under Vestberg’s eight-year tenure, the company made massive investments in its 5G network and spectrum, establishing a technological lead but sometimes struggling to translate that into consistent customer and financial momentum.
Bertolini noted that with the Frontier transaction pending, the board and Vestberg agreed “that now is the right time for a CEO transition.”
Schulman, who tripled PayPal’s revenue during his tenure, said Verizon is 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,” Schulman said.
Vestberg, credited as the architect of Verizon’s 5G strategy, said he was passing the baton 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.
Verizon reiterated its full-year 2025 financial guidance and said it will report third-quarter earnings on Oct. 29.