Nokia CEO Pekka Lundmark is set step to down, with Intel’s data centre and AI general manager Justin Hotard set to take over.
Hotard will take over the Nokia mantel from April 1, ending Lundmark’s five-year reign at the Finnish firm.
A Nokia statement said the departing CEO was leaving to “move on to the next phase of his career” though he will continue as an advisor to the new CEO until the end of the year.
“Leading Nokia has been a privilege,” Lundmark said. “This is the right time for me to move on. I have led listed companies for more than two decades and although I do not plan to stop working, I want to move on from executive roles to work in a different capacity, such as a board professional.”
The announcement of Lundmark’s departure came months after Nokia denied reports the company was looking to replace the CEO amid a series of poor revenue performances. The operator did, however, beat market expectations in its latest earnings report, with revenues rising by 9% to $5.98 billion.
Lundmark’s replacement is a seasoned technology executive who has held positions at Motorola, NCR Corp, and Hewlett Packard Enterprise (HPE), among others.
Hotard joins Nokia having only just joined Intel, jumping ship after spending almost a decade at HPE across roles including EVP for its high-performance computing and AI group, and SVP for corporate transformation, among others.
Nokia’s new CEO will be based at the company’s headquarters in Espoo, Finland, with the departing Lundmark describing his replacement as “a great choice for Nokia”.
“I am delighted to welcome Hotard to Nokia,” said Sari Baldauf, chair of Nokia’s Board of Directors. “He has a strong track record of accelerating growth in technology companies along with vast expertise in AI and data centre markets, which are critical areas for Nokia’s future growth.
“In his previous positions, and throughout the selection process, he has demonstrated the strategic insight, vision, leadership and value creation mindset required for a CEO of Nokia.”
The new CEO expressed excitement about pushing Nokia’s transformation efforts: “Networks are the backbone that power society and businesses and enable generational technology shifts like the one we are currently experiencing in AI.”
Hotard added: “I am excited to get started and look forward to continuing Nokia’s transformation journey to maximise its potential for growth and value creation.”
On Lundmark’s departure, board Baldauf said he would leave with Nokia’s “highest respect”.
“The planning for this leadership transition was initiated when [Lundmark] indicated to the Board that he would like to consider moving on from executive roles when the repositioning of the business was in a more advanced stage, and when the right successor had been identified. Now, both of those conditions have been met, and he has decided to step down,” Baldauf said.
She continued: “Lundmark joined at a difficult time in Nokia’s history. Under his tenure, Nokia has re-established its technology leadership in 5G radio networks and built a strong position in cloud-native core networks.
“Network Infrastructure has delivered growth and significant profit improvement, and Nokia has secured the longevity of its patent licensing business. At the same time, Nokia has built strong foundations in new growth areas, refreshed the company’s brand and culture, transformed its operating model and rebalanced its portfolio.”
