UPDATE: Verizon COO Strigl To Retire, Opens No. 2 Spot
September 03 2009 - 3:49PM
Dow Jones News
Verizon Communications Inc. (VZ) said Thursday that
telecommunications veteran and Chief Operating Officer Dennis
Strigl plans to retire from the company by the end of the year,
potentially paving the way for a clearer succession plan.
Strigl's departure will leave open the No. 2 position at the New
York-based telco, which presumably would become the potential
successor to Chairman and Chief Executive Ivan Seidenberg. His
retirement also marks the second exit by a top executive this
year.
A successor wasn't immediately named, and Verizon declined to
comment on any candidates. Strigl said he was comfortable leaving
due to the depth of the executive team, but said the decision on a
replacement would ultimately be up to Seidenberg.
"We have a sound strategy moving forward," he told Dow Jones
Newswires on Thursday. "The senior executive team in my mind is the
best bar none."
In March, John Killian stepped in to replace Chief Financial
Officer Doreen Toben, who earlier this year announced her
retirement after a two-decade career.
It's unclear who would step in to fill Strigl's shoes.
"My guess is it's going to be someone internal," said Chandan
Sarkar, an analyst for Auriga USA LLC.
He continues to serve on a handful of boards, including those of
Verizon Wireless, Eastman Kodak Co. (EK) and PNC Financial Services
Group Inc. (PNC).
Strigl, 63, has been planning his retirement for months after
more than 41 years in the telecommunications industry. He played a
key role in the introduction of wireless service in 1984, and was
also instrumental in the wave of telecom mergers that formed the
current iteration of Verizon.
More recently, he's helped position Verizon to rely more on the
faster growing wireless business, shifting away from the
deteriorating traditional landline operations. He's also had a hand
in upgrading the network with faster fiber-optic lines, allowing
the company to offer television through its FiOS service.
The company's continued strength in the downturn was illustrated
earlier Thursday by its decision to raise its dividend for the
third consecutive year, although the jump was smaller than in the
past.
"He has been a major force in the transformation of Verizon,
positioning the company to lead in all of our strategic growth
areas," Seidenberg said in a statement.
Strigl plans to pursue other projects, including a stint as a
possible aviation instructor. Before joining New York Telephone in
1968, he was on track to be a commercial airline pilot.
Verizon rose 9 cents to $30.23.
-By Roger Cheng, Dow Jones Newswires; 212-416-2153;
roger.cheng@dowjones.com