Juniper CEO resigns amid allegations of misconduct
Shaygan Kheradpir's departure effective immediately, Juniper says
Juniper Networks CEO Shaygan Kheradpir resigned from his post yesterday, following a review by the company's board of directors into his leadership.
In a statement, Juniper hinted at misconduct in connection with a key Juniper customer as the reason for Kheradpir's departure, which is effective immediately. The networking vendor announced that its current R&D boss, Rami Rahim, would become the new CEO.
While the exact details around Kheradpir's departure are unknown, Juniper's statement said that the board and Kheradpir have different perspectives on the matter. It was, however, made clear from the statement that the CEO was forced to resign.
Reports say that Kheradpir will have to pay back a substantial amount of his $5m signing bonus. He had been with the company for less than a year, having joined from Barclay's in January. During his tenure, Juniper made a push towards what the company calls ‘High-IQ' networks - automated infrastructures that self-configure based on capacity and bottlenecks. As a result, the vendor has been aggressively targeting telecoms operators and cloud service providers with its networking kit.
Juniper said that Kheradpir's departure would not require the company to re-adjust any of its financial statements. Last month, the company announced a 5% year-over-year revenue decline for the third quarter of 2014. Juniper attributed this slowdown to lower-than-expected demand from service providers, but maintained that its business was in good shape thanks to recent cost reductions.
Juniper added that, under Rahim's leadership, it would still be fully committed to its current strategy and financial targets.
Rahim, a 17-year veteran of the company, worked as an engineer on Juniper's first product, the M40 core router. He was also one of the original architects of the MX, Juniper's flagship routing platform, and oversaw the product become one of Juniper's best-sellers.
"Rami is the right chief executive officer to lead Juniper," said Scott Kriens, chairman of the board, Juniper Networks.
"He is a talented leader who brings deep instincts about the networking industry, and enormous support from our employees and our customers. Rami has succeeded at every challenge he's ever taken on at Juniper, and we couldn't be more excited about his ability to lead this company."
For his part, Rahim said that Juniper employees have risen to the challenge this year and enabled the company to make strong progress, including sharpening its focus on high-growth segments.
"And we've accomplished this while readying our next wave of great products. I want to thank my talented colleagues around the world for their hard work and dedication," he said.
"The management team and I remain committed to our strategy and are excited about the opportunities that lie ahead for Juniper."