The Wall Street Journal-20080118-Alcatel Services Chief Leaves- Meyer-s Departure Is First Since Team Was Reorganized
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Alcatel Services Chief Leaves; Meyer's Departure Is First Since Team Was Reorganized
PARIS -- Alcatel-Lucent announced the first departure from its recently unveiled management committee as John Meyer, head of its services business, left to become chief executive of U.S.-based Acxiom Corp.
Andy Williams will succeed Mr. Meyer as president of the services business at the Franco-American telecommunications-equipment maker. Mr. Williams headed Alcatel-Lucent's network-operations business globally for the services group.
In the third quarter of 2007, adjusted operating income at Alcatel- Lucent's services business slipped to 40 million euros ($58.6 million) from 60 million euros a year earlier.
Alcatel-Lucent's eight-person management committee, unveiled at the end of October, was an attempt by Chief Executive Patricia Russo to carve a leaner top tier of executives from the previous 22-person senior team at the merged company. The tighter team was also intended to ensure greater accountability and avoid some of the slip-ups that plagued the company during the first year after its merger.
Mr. Meyer, 51 years old, wasn't available to comment on his departure. He will join Acxiom, which specializes in data-integration services and data warehousing for companies, on Feb. 4, the Little Rock, Ark., company said. Acxiom's board had been searching for a new CEO since October, when Charles Morgan, who became chairman and CEO in 1975, announced his retirement. Mr. Morgan will remain a consultant through 2010.
At Alcatel-Lucent, Mr. Williams will join the senior management of a company seeking to steady its performance after three profit warnings in 2007.
Alcatel-Lucent's share price has dropped nearly 60% over the past 12 months because of disappointing financial results and fears over the outlook for the telecommunications-equipment market this year.
"The loss of John Meyer is clearly a negative for Alcatel-Lucent," said Richard Windsor, an analyst at Japanese finance house Nomura. "We credited him with successfully running Lucent's services business, and integration is going reasonably well inside the new company."
Alcatel-Lucent shares rose 2.7%, or 12 European cents, to 4.64 euros in an overall weaker Paris market.
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Michael Kitchen contributed to this article.
