& cplSiteName &

Turmoil at Juniper as CEO Quits

Ray Le Maistre
11/10/2014
100%
0%

As if Juniper wasn't already under enough pressure and scrutiny, Shaygan Kheradpir, who has been in the hot seat for less than a year, has quit with immediate effect following a "review by the board of directors of his leadership and his conduct in connection with a particular negotiation with a customer."

Kheradpir's short reign on the Juniper Networks Inc. (NYSE: JNPR) throne was tumultuous, starting with a public attack by activist investors, followed by a strategy review, job cuts, executive defections and a capex crunch in the service provider sector:

Kheradpir, who joined from Barclays Bank, was due to give a presentation to media and analysts in London last week, but pulled out at the last minute, with the company citing "illness" as the reason.

Now, it seems, the real reason is that the newly ex-CEO was fighting with the board over his performance and also the way he had interacted with a particular customer: As the company's statement today noted, "The board and Kheradpir have different perspectives regarding these matters."

Juniper's stock had already lost 1.87% on Monday trading to close the day at $21.50 following news of AT&T Inc. (NYSE: T)'s intention to allocate less cash to its capex budget in 2015. (See AT&T's Mexican Capex Dance.)

Once the news of Kheradpir's resignation hit the wires, the stock lost a further 0.23% in after-hours trading to hit $21.45. That the reaction to Kheradpir's departure didn't make more of a dent in the stock suggests that Wall Street does not regard this move as majorly negative for the company.

His replacement is Rami Rahim, a Juniper employee of 17 years' standing, whose most recent role was executive vice president and general manager, Juniper Development and Innovation.

"Rami is the right chief executive officer to lead Juniper," stated chairman Scott Kriens in the company's official statement Monday. "He is a talented leader who brings deep instincts about the networking industry, and enormous support from our employees and our customers. Rami has succeeded at every challenge he's ever taken on at Juniper, and we couldn't be more excited about his ability to lead this company."

It now falls on Rahim to steady the Juniper ship and ensure it becomes a major player in SDN and NFV in 2015 while defending the router business that underpins the company's revenues and margins.

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

(9)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
11/23/2014 | 8:47:41 PM
Re: Good luck, Rami Rahim
Article I saw was Verizon, where he worked for a long time, so probably berating one of his old collegues, and this time he couldn't get a way with it.
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
11/23/2014 | 8:46:30 PM
Re: Rahim
From stories I have heard, it's not a surpise. He was a loose cannon at VZ. 
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
11/13/2014 | 7:50:26 PM
Re: Rahim
Makes perfect sense to me.  Imagine the hit the stock could have taken if they fired the CEO without a replacement.
bosco_pcs
50%
50%
bosco_pcs,
User Rank: Light Sabre
11/13/2014 | 2:33:11 PM
A lot of stuff going on here
Ray, I read about it on NYT yesterday. The unusual thing about Dr Kheradpir's departure is that he has to repay part of his sign-on bonus and even moving expenses. Usually, you pay to get rid of a CEO. So, one can draw one's conclusion.

If memory serves, Juniper began to unravel when it failed to please Wall Street by saying some customer has delayed some order. Evidently, Cicso got some market shares back from it. Even with showing any signs of weakness, the barbarians may show up at the gate. So...

About the share price, maybe it is because activist investors think the company is still in play. Picking a long term insider doesn't dispel such a possibility
R Clark
50%
50%
R Clark,
User Rank: Blogger
11/11/2014 | 6:08:38 PM
Re: Rahim
Stocks usually get a bounce from a new CEO. It's pretty interesting that the board made the new appointment immediately. As if they'd already made their mind up to dump Kheradpir.
Joe Stanganelli
100%
0%
Joe Stanganelli,
User Rank: Light Sabre
11/11/2014 | 6:37:48 AM
Rahim
Re: "That the reaction to Kheradpir's departure didn't make more of a dent in the stock suggests that Wall Street does not regard this move as majorly negative for the company."

It could also be a vote of confidence in Rahim -- something that the comments here so far seem to echo.
Ray@LR
100%
0%
Ray@LR,
User Rank: Blogger
11/11/2014 | 5:15:26 AM
Re: Good luck, Rami Rahim
I also met Rami, and while he may not remember, I have video evidence!! :-)

Telstra's New Network Edge
http://www.lightreading.com/ethernet-ip/routers/telstras-new-network-edge/v/d-id/704861

All of that knowledge and competency is in his favor and that will, I'm sure, help settle some of the concerns of Juniper staff, customes and partners.

But his challenge as the CEO of Juniper goes well beyond all of that -- he will need to be a great politician, be able to juggle the demands of the board, demanding investors, customers, partners and unsettled senior managers all at the same time etc etc -- that's got to be tough for anyone. 
Gabriel Brown
100%
0%
Gabriel Brown,
User Rank: Light Sabre
11/11/2014 | 4:10:13 AM
Re: Good luck, Rami Rahim
Interesting timing.

I met Rahmi Rahem once (I'm sure he doesn't remember). He gave a brilliant explanation of the technology choices Juniper used to build the MX. He very clearly knows the technology and the market. He seemed personable enough as well, but with more than a hint of "a seriously strong backbone and nerves of steel".
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
11/10/2014 | 7:14:25 PM
Good luck, Rami Rahim
I hope Rami has a seriously strong backbone and nerves of steel.

And does anyone know which customer was at the heart of the 'conduct' questions? 
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
VMWare VP Brings Women Up With Her

8|16|17   |   6:49   |   (1) comment


It's an art and a science to make mentorship, inclusive leadership, diversity and promotion of high-potential women work, says Honore' LaBourdette, vice president of Global Market Development at VMWare.
LRTV Documentaries
5G Spectrum Wars – The Recap

8|15|17   |   2:22   |   (0) comments


Service provider 3 has filed a lawsuit against Ofcom over 5G spectrum auction in the UK.
LRTV Custom TV
Say What? Facebook Unleashes AI Anarchy – The Recap

8|7|17   |     |   (0) comments


A recap of the week's talking points on Light Reading's sister site, telecoms.com. Facebook AI programmers had a bit of a brain-fade as they allowed one of its AI applications to invent its ...
Women in Comms Introduction Videos
Fujitsu's Women Band Together to Help Girls Do STEM

8|2|17   |   9:35   |   (1) comment


Supporting women both inside and outside of Fujitsu is a top priority of the telecom vendor. Yanbing Li, Fujitsu Network Communication's director of System Software Development & Delivery, shares why it's important, but why there's still a long road ahead.
LRTV Custom TV
If You're Not First, You're Last – The Recap

7|31|17   |   08:18   |   (1) comment


In case you missed it, Amazon's 1% stock increase helped Jeff Bezos dethrone Bill Gates as the richest man in the world. Also, Taiwanese electronics manufacturer
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (10) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Intel CEO Leaves Trump Biz Advisory Board
Dan Jones, Mobile Editor, 8/15/2017
Are Cord-Cutting's Days Numbered?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 8/14/2017
Analyst Nolle: Fundamental Errors Plague NFV
Carol Wilson, Editor-at-large, 8/11/2017
Snapchat Misses Estimates, Eyes Reality Shows
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 8/11/2017
ATIS: Connected Car Security an Industry-Wide Issue
Carol Wilson, Editor-at-large, 8/10/2017
Like Us on Facebook
Twitter Feed
Animals with Phones
We Know a Tough Day When We See One Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.