NEW YORK — Verizon Communications on Monday named Dan Schulman, the former chief executive officer of PayPal, as its new CEO, replacing Hans Vestberg in a leadership transition designed to steer the telecommunications giant through a period of slowing growth and rising competition in the US wireless market.
The move marks one of the most significant executive shake ups in the telecom sector this year. Schulman, 67, is widely credited with transforming PayPal into a global payments powerhouse.
His appointment underscores Verizon’s effort to revitalize its strategy as consumer spending tightens and rivals race ahead in subscriber growth.
Vestberg, who has led Verizon since 2018, will stay on as a special adviser until October 4, 2026, the company said in a statement.
Verizon’s decision to tap Schulman comes as the US wireless market faces stagnation, with consumers cautious about upgrading to premium plans amid inflationary pressures.
The company, long seen as a leader in network reliability, has struggled to maintain its competitive edge as AT&T and T-Mobile US expand their market share through aggressive pricing and promotional campaigns.
During Vestberg’s tenure, Verizon invested heavily in 5G infrastructure, acquiring spectrum and modernizing its network to support next generation connectivity.
The company also pursued diversification into media and enterprise solutions, acquiring AOL and Yahoo in earlier years before later divesting much of its media business in 2021.
Despite these moves, Verizon’s stock performance has lagged behind peers. Over the past three years, shares have risen just 4%, compared to a 15% gain for AT&T and more than 20% for T-Mobile.
Analysts view Schulman’s appointment as a strategic pivot toward strengthening Verizon’s digital and financial offerings.
“Dan Schulman’s background at PayPal signals Verizon’s intent to double down on financial technology and digital transformation,” said Marissa Kent, senior telecom analyst at Raymond James.
“He has a track record of navigating disruption, which could be vital as the company adapts to a maturing wireless landscape.”
Industry observers also note Schulman’s experience leading PayPal through its 2015 split from eBay and managing surging digital transactions during the COVID-19 pandemic could bring a fresh perspective to Verizon’s business model.
“Verizon needs to rethink how it monetizes its 5G assets and expands into adjacent services like mobile payments, IoT, and enterprise solutions,” said David Cho, professor of business strategy at Columbia University.
Schulman’s digital first approach may help accelerate that shift. Still, challenges remain. The US telecom industry has become increasingly price sensitive, with growth largely driven by switching incentives rather than new subscribers.
According to data from GSMA Intelligence, US mobile penetration reached 105% in 2024, signaling market saturation. Industry revenue growth slowed to 1.8% last year, compared to 3.2% in 2021.
Verizon reported 1.1 million postpaid net additions in 2024, down from 1.9 million in 2022. Meanwhile, T-Mobile added 2.7 million new postpaid customers, continuing to lead the industry.
Financially, Verizon’s 2024 revenue totaled $133.6 billion, a 1.2% year over year decline. Its net income stood at $21.4 billion, while its enterprise and fixed wireless access segments showed modest gains.
Reaction among Verizon employees and customers was mixed but hopeful. Schulman’s appointment feels like a reset, said Carlos Ramirez, a Verizon store manager in Houston.
“We’ve seen great network improvements, but customers want more innovation especially around affordability and digital services.” Longtime Verizon customer Angela Peterson from Denver echoed similar sentiments.
“I’ve stayed with Verizon because of its reliability,” she said. “But the plans are expensive. Maybe new leadership will find a balance between quality and value.”
Investor response was cautiously optimistic. Verizon shares rose 2.1% in early trading Monday following the announcement.
Markets tend to welcome leadership changes when companies face stagnation, said Mark Liu, equity strategist at JPMorgan. “Schulman’s proven execution at PayPal could boost confidence among shareholders.”
Schulman’s immediate priorities are expected to include stabilizing subscriber growth, optimizing Verizon’s cost structure, and identifying new revenue streams in digital services.
Analysts predict he may also revisit partnerships in fintech, streaming, and enterprise connectivity. “The telecom sector is converging with digital finance and media,” said Kent.
“Verizon could leverage Schulman’s fintech expertise to create new bundles that integrate wireless, payments, and content.” The leadership change also aligns with broader shifts across the industry.
In September, T-Mobile announced that longtime CEO Mike Sievert would step down in 2026, while AT&T has been restructuring its consumer business to focus on fiber and mobility.
As carriers seek differentiation in a saturated market, executives are increasingly turning to innovation and customer centric offerings rather than traditional price wars.
Verizon’s selection of Dan Schulman as CEO marks a pivotal moment for the company as it grapples with a maturing wireless market and intensifying competition.
With deep experience in digital transformation and strategic execution, Schulman faces the task of repositioning Verizon for sustainable growth.
As the telecom industry undergoes a generational shift in leadership, all eyes will be on whether Verizon’s new chief can translate his fintech success into renewed momentum in one of the nation’s most competitive sectors.