Verizon Communications appointed Dan Schulman as its new chief executive on Monday, effective immediately. According to CNBC, the 67-year-old former PayPal CEO replaces Hans Vestberg, who led the company since 2018. Mark Bertolini was named chairman of the board of directors.

Schulman served on Verizon's board since 2018 and became lead independent director in December 2024. During his tenure at PayPal from 2015 to 2023, he grew annual revenue from $8 billion to $30 billion. The company added hundreds of millions of customers globally under his leadership.

Vestberg will remain as special advisor through October 2026 to ensure smooth transition and integration of Frontier Communications. The $20 billion Frontier acquisition received regulatory approval in May 2025 and is expected to close in first quarter 2026. Verizon shares dropped approximately 2% in morning trading following the announcement.

Why This Matters

Yahoo Finance reports the change comes as Verizon faces slowing subscriber growth and cautious consumers unwilling to purchase premium wireless plans. The U.S. telecom market is maturing, creating pressure on all major carriers to retain customers and grow revenue.

Schulman brings extensive telecommunications experience, having worked at AT&T for over 18 years early in his career. He also founded Virgin Mobile USA, growing it from launch in 2002 to more than 5 million customers before its sale to Sprint in 2009. His background combines telecom operations with financial services innovation.

Verizon stock has underperformed competitors in recent years. The appointment reflects the company's need for fresh strategic direction to drive market share growth and improve financial performance. Schulman stated Verizon is "at a critical juncture" with clear opportunity to grow across all market segments.

Industry Implications

According to TeleGeography, the U.S. mobile sector remains dominated by three players as of December 2024. T-Mobile holds 35% market share, Verizon has 34%, and AT&T controls 27%. This tight competition requires constant innovation and customer focus from all three carriers.

The leadership change follows T-Mobile's recent CEO replacement announcement, reflecting broader transformation in the sector. Invezz notes that Verizon faces mounting pressure as rivals intensify their push into both home internet and wireless services.

Vestberg's tenure focused on 5G network infrastructure investments and spectrum acquisitions. The company spent heavily on C-Band spectrum to maintain network leadership. Under new leadership, Verizon must balance continued infrastructure investment with improved customer acquisition and operational efficiency to satisfy shareholders.

The Frontier acquisition positions Verizon to expand fiber broadband services to approximately 1 million additional households. This diversification beyond wireless services represents a strategic shift that Schulman will oversee during the integration process. Success depends on effectively combining mobile and fixed broadband offerings in an increasingly competitive market.

Further Reading

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