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Wed 3 Oct 2007 03:10 PM

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Alcatel-Lucent voices support for CEO

Board states that while "clearly disappointed" with changes in the company's outlook, it continues to back Russo.

Amid speculation that she may be forced to step down, the board of telecom equipment supplier Alcatel-Lucent has officially stated its support for its CEO Patricia Russo.

Following a barrage of criticism in the press and open questioning as to whether Russo, the former CEO of Lucent, is the right person to steer the US-France alliance through its post-merger integration, the firm yesterday issued a statement voicing its support for the CEO.

Whilst admitting that it was "clearly disappointed" in the recent changes in the company's outlook, the board said it supported Russo and the leadership team, and "the efforts they are making to adapt the company's plans in light of this year's developments".

Recent press reports speculated Russo's job was on the line after the company issued its third in a series of profit warnings. Russo was reportedly given one month to produce a restructuring plan to turn the company's fortunes around.

The board stated it intends to review a plan from management at its next meeting scheduled for 30 October.

"The board reiterated its confidence in the strategic direction taken with the merger of Alcatel-Lucent, the future potential of the company and said it will continue to work with the company's leadership team to enhance value for shareholders, employees and customers worldwide," the statement read.

Alcatel-Lucent was formed last year from the merger of French firm Alcatel and its US rival Lucent

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