- Verizon’s decision to replace Hans Vestberg as CEO didn’t come as a shock because the company’s been steadily losing subscribers
- But the timing seems odd – and the “effective immediately” part amplified the surprise factor
- The move also sparked questions about why Consumer Group chief Sowmyanarayan Sampath was passed over as CEO
When Verizon revealed this week that Hans Vestberg is out and Dan Schulman is its new CEO, a lot of people wondered: What happened to Sowmyanarayan Sampath, who had long been viewed as heir apparent?
Verizon’s obviously trying to move on. Already this week, it announced the acquisition of fixed wireless access broadband provider Starry and a commercial agreement with AST SpaceMobile, the latter of which seems more like a formality than breaking news. These were no doubt well in the works before Verizon abruptly switched its head honcho, but nonetheless, they serve as diversions to shift the conversation.
Still, its leadership succession continues to draw scrutiny. Verizon never publicly promised the CEO job to Sampath as far as we know, but many on Wall Street assumed Sampath was next in the succession line. Sampath joined Verizon in 2014 and quickly rose up the ranks, taking over as CEO of the Consumer Group in 2022, reporting directly to Vestberg.
At 67, Schulman brings decades of experience, including eight years as CEO of PayPal and eight years as the founding CEO of Virgin Mobile. But broadly speaking, analysts see him as a short-term fixer who will spend the next couple years restructuring and “righting the ship” while Sampath prepares to take the reins on a longer-term basis.
“Dan Schulman will come in to pinch hit as CEO to reboot Verizon, inflicting needed pain and bridging to the time Sampath cements his fiber/wireless strategy and establishes himself as the heir apparent next time,” said New Street Research analyst David Barden in a report for investors. “The plan is big cost cuts, a reversal of the pricing strategy of the past several years, which has driven up churn, and putting buybacks and strategic acquisitions on the credit card by raising leverage targets.”
Wolfe Research analyst Peter Supino offered a similar take. “Verizon watchers respect Consumer CEO Sampath. Why isn’t he CEO? Sampath succeeded at the helm of Business and is just two years into leading Consumer. We imagine (don’t know) that Schulman and the board are supportive of Sampath’s long-term leadership and believed Schulman better experienced for the job at this juncture.”
Verizon’s timing questioned
Beyond who’s in charge, the suddenness of the move caught many off guard. IDC analyst Jason Leigh said he was surprised not so much by the change itself, but by how it was communicated.
“There was no prior indication that it was even in the pipeline,” he told Fierce. “Even if the change had been more overtly telegraphed, the abruptness of the ‘effective immediately’ amplifies the surprise factor.”
Leigh contrasted Verizon’s approach with T-Mobile’s recent leadership transition, where the company announced Mike Sievert’s departure and Srini Gopalan’s arrival as CEO two months in advance.
“The lack of a clear ‘why’ and ‘why now’ rationale for the change leaves too much blank space for speculation and second-guessing,” he said.
Verizon’s bumpy execution in 5G hasn’t helped its situation. Investment analysts consistently give high marks to T-Mobile for building the “best network” in the 5G era, a perception that is slowly catching on with consumers.
“Verizon is fundamentally in a jam as an incumbent leader with higher prices but no longer the No. 1 network, making it vulnerable to competitors,” said TD Cowen analyst Greg Williams in a note for investors. “Verizon is in a particular jam as it hiked prices earlier this year to preserve guidance but may not be a sustainable strategy into 2026.”
Specifically, Verizon’s “jam” includes a costly millimeter wave debacle, premature edge investments and slow rollout of 5G standalone (SA). Compared to T-Mobile, Verizon spent more on capex and fell behind in fixed wireless access (FWA) growth, noted Roy Chua, principal of AvidThink.
“What likely sealed Vestberg's fate was the continued weakness in subscriber numbers in early 2025, alongside skepticism about the Frontier acquisition,” Chua added.
He’s among those wondering why Vestberg’s ouster didn’t happen sooner. Verizon’s been steadily losing phone customers, including at least 330,000 in the first half of 2025, and its stock price is down about 30% over the past five years.
Does Sampath stay or move on?
It’s those losses in the consumer division that have some analysts wondering if Sampath ultimately will get the CEO job.
Analyst William Ho of 556 Ventures remembers talking with this reporter years ago when Manon Brouillette was ousted as CEO of Verizon’s Consumer Group. He questioned Vestberg’s longevity then – when Vestberg took on Brouillette’s role before naming Sampath as head of that division.
“Sampath’s efforts haven’t righted the ship in my view,” Ho told Fierce. “T-Mobile is continuing to hit on all cylinders from the ‘growth and exceeding expectations’ standpoint. If Sampath stays in as Consumer head, he will need to drastically improve and deliver the growth that the board and financial community expect.”
The big question is whether more heads will roll – or which ones. Schulman’s been on Verizon’s board since 2018 and was elected lead independent director in December 2024.
No doubt, he’s already got a plan in mind. “As an old industry hand, he’s likely to have some ideas to right the ship. I think it has to be radical and not incremental,” Ho said. “Another issue is whether he feels the current executive team will be on board with his vision and execute. I’m looking to see any entries or exits in addition to musical chairs in the executive ranks.”