The Sunnyvale, Calif.-based company said late Monday that Rami Rahim will replace Shaygan Kheradpir as CEO, effective immediately. Kheradpir was CEO of Juniper Networks for just 10 months.
Rahim is a 17-year veteran of Juniper. He previously served as executive vice president and general manager of Juniper Development and Innovation, where he was responsible for "driving innovation" across the company through the oversight of all research and development programs, strategy, development, and business growth across the portfolio of routing, switching, and security, according to a company press release.
Watch the video below for more on the departure of Juniper's CEO:
Kheradpir's resignation follows a "review by the board of directors of his leadership and his conduct in connection with a particular negotiation with a customer," the release said. "The board and Kheradpir have different perspectives regarding these matters." Juniper's board made no changes to its financial targets for the company's near- and long-term outlooks.
Shares were down 3.6% to $20.73 at last check. Here's what analysts had to say.
Bill Choi, Janney Capital Markets (Buy; $28 fair value estimate)
Mr. Rahim has been a rising star at Juniper, most recently serving as EVP and GM of Juniper Development and Innovation, Mr. Rahim is a 17-year veteran of Juniper, has a strong technical background, and is well-liked by investors and customers. The company's recently announced strategy is intact, and Mr. Rahim has been a big part of creating and implementing it, so we expect a relatively smooth transition.
On the conference call, Chairman Scott Kriens made vague references to Mr. Kheradpir's leadership and a recent handling of a particular negotiation with a customer, but never provided any specific details, and denied any links to financial performance-related reasons. Importantly, there will be no adjustments to financial statements and customer relationships are unchanged.