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New CEO at Philips marks healthcare transformation

Business news |
By Nick Flaherty

The transformation of Dutch electronics giant Royal Philips that started with the spinout of its semiconductor businesses is essentially complete with the appointment of a new CEO.

Philips spun out NXP Semiconductor in 2006 which spun out Nexperia in 2017, and has since sold off its lighting and consumer products businesses to focus on healthcare technologies and products.

Frans van Houten will hand over as CEO to Roy Jakobs in October after 12 years and three terms.

After a comprehensive evaluation of external and internal candidates, the Supervisory Board has unanimously decided to propose Jakobs as the next President and CEO of Royal Philips.

Jakobs has led the Connected Care portfolio through successful acquisitions across hospital and ambulatory care settings as part of the new focus for the company. He also took on responsibility for the voluntary recall notification/field safety notice for specific Respironics devices, which is a key, and costly, issue for the company.

The supervisory committee says he has a deep understanding of Philips, which is critical at this important juncture in the company’s growth journey.

In close cooperation with Chairman Feike Sijbesma and the Supervisory Board, the aim is to strengthen its role as a leading health technology company with a planned approach. Key priorities are to further deepen the quality and patient safety capability across the company, complete the Respironics field action in consultation with the relevant competent authorities, and lead Philips to resume its profitable growth trajectory by addressing current headwinds, including strengthening supply chain resilience to enable the successful conversion of the all-time-high order book into sales.

“On behalf of the entire Supervisory Board, I would like to thank Frans for his transformational leadership of Philips over the last nearly 12 years,” said Sijbesma. “Guided by his vision and the execution of the strategic roadmap, he has successfully led the company’s transformation from a diversified industrial conglomerate into a focused, global solutions leader in health technology. Building on its 131-year heritage, he repositioned Philips to significantly enhance the future value-creating prospects of the company. Frans led Philips with genuine care for its customers, patients, and its employees.”

Transformation

“It has been both a privilege and a pleasure to lead the transformation of Philips, over the past 12 years, into one of the largest health technology companies in the world, bringing innovative solutions to help our customers deliver on the Quadruple Aim of better health outcomes, higher healthcare productivity and much improved patient and staff experience,” said van Houten.

“I have very much enjoyed working with so many talented and committed colleagues and building long-term relationships with our customers and other stakeholders. While I am proud of our many accomplishments, much remains to be done to enhance the resilience of Philips to manage through current setbacks and adverse market conditions,” he said.

Since joining Philips in 2010, Roy Jakobs has held various positions, starting as Chief Marketing & Strategy Officer for Philips Lighting. In 2012, he became Market Leader for Philips Middle East & Turkey across health systems, consumer, and lighting, and transformed a volatile and emerging business into a performing business that offers turnkey solutions for customers. Subsequently, in Shanghai, he put the business he was responsible for on a value creation track.

“I aim to build on the company’s strong foundation as a purpose-driven health technology leader with deep innovation and clinical expertise, to serve the needs of patients and consumers today and in the future,” said Jakobs. “I look forward to working with Philips’ teams across the world to deliver a strong value creation trajectory for shareholders and all our other stakeholders. I also want to take this opportunity to thank Frans for his trust and the great support he has given me over the years.”

www.philips.com

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