Name: Roy Jakobs
New title: Chief executive officer and president, Philips
Previous title: Chief business leader of connected care, Philips
Philips shareholders have appointed Roy Jakobs as the company’s next CEO and president, Philips announced on Friday. Jakobs will take over effective Oct. 15.
In August, the company announced that Jakobs was selected to succeed current CEO Frans van Houten and shareholders have now made the move official. Jakob leads the company’s connected care unit and has helped shape its response to the recall of millions of sleep apnea and ventilator machines.
The recall began in June 2021 and has grown to more than 5.5 million devices. It has led to the Food and Drug Administration inspecting facilities and ordering Philips to improve “inadequate” communication efforts and to consent decree negotiations with the U.S. Department of Justice. The company also is facing an investigation by French prosecutors of the recall.
With the recall keeping Philips out of the sleep apnea market for more than a year, rival ResMed has been increasing its share of the market for the devices.
Philips also has been the target of multiple Class I recalls this year, two settlements with the Department of Justice and a cut in its revenue growth forecast to 1% to 3% in 2022 compared with a previous range of 3% to 5%.
Philips’ stock price climbed 1.6% to $15.57 in Friday morning trading following the announcement.