Clearwire, a provider of wireless broadband services, announced a major shakeup of its executive leadership.
On the outs is chief executive Bill Morrow. Clearwire announced Morrow has resigned as CEO and from the board for personal reasons. John Stanton, chairman of Clearwire's board of directors and former chief executive of Western Wireless and VoiceStream Wireless, will take his place.
I would like to commend Bill for his tremendous leadership in building the first U.S. 4G network, adding more than 5 million subscribers, and raising funds in a challenging economic environment, Stanton said in a statement. Bill built a strong leadership team which enables us to promote Erik Prusch and Hope Cochran to new roles. Together, the entire management team at Clearwire remains focused on delivering value to its customers and shareholders.
Morrow will continue to serve as an advisor to the company during the transitional period. Already, Clearwire has created a search committee to find Morrow's permanent replacement. The board will be chaired by board member Dennis Hersch.
On top of this move, Clearwire has promoted chief financial officer Erik Prusch to the newly created role of chief operating officer. In this role, Prusch will be responsible for the company's day-to-day operations. Hope Cochran, Clearwire's senior vice president and treasurer, is the new CFO.
Chief commercial officer Mike Sievert and chief information officer Kevin Hart are also leaving the company to pursue other opportunities. Clearwire does not expect to be affected by the changes.
Clearwire's stock ended the day at $5.75. In after hours trading the stock slipped to $5.60.
Clearwire is best known for its partnership with wireless service provider Sprint Nextel. Sprint has a 54 percent stake in Clearwire and uses the company's WiMax network for its 4G services.
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