(Reuters) - Finnish telecommunication gear maker Nokia promoted Rajeev Suri, the head of its biggest division, to chief executive on Tuesday, tasking him with charting its future growth without the mobile phone unit for which it was best known.
The company also announced plans to return $3.1 billion to shareholders via buybacks and extra dividends, a move seen by some analysts as an attempt to retain investors as it refocuses is business.
Suri, a 46-year-old Indian national, has until now led Nokia Solutions and Networks (NSN), the network equipment unit which competes with larger rivals such as industry leader Ericsson as well as Chinese rival Huawei [HWT.UL].
The division was loss-making for several years but turned profitable in 2012 after Suri slashed costs and shed unprofitable businesses. Last year, NSN contributed most of the 12.7 billion euro ($17.6 billion) turnover Nokia made from its continuing operations and the company has vowed to make a more aggressive push to increase its share of the networks market.
"Rajeev is the right person to lead the company forward," Nokia Chairman Risto Siilasmaa said in a statement. "He has a proven ability to create strategic clarity, drive innovation and growth,
Pradeep Shukla
PGDM 2 sem
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