Juniper CEO Kheradpir Resigns After Review

(RTTNews) - Computer networking-gear maker Juniper Networks, Inc. (JNPR) said Monday that Shaygan Kheradpir has resigned as chief executive officer and a director of the company, effective immediately, following a board review of his conduct related to a customer negotiation.

"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 board and Kheradpir have different perspectives regarding these matters," the company said in a statement.

The board's review will not result in any adjustments to the company's financial statements, Juniper noted. Kheradpir will be obligated to repay a pro-rated amount of his sign-on bonus and relocation assistance within a two year period.

Kheradpir had joined Juniper in January 2014 from Barclays PLC (BCS, BARC.L), where he served as the chief operations and technology officer.

The Sunnyvale, California-based company has named Rami Rahim, a 17-year Juniper veteran, to succeed Kheradpir as CEO. Rahim has also been appointed to the company's board of directors.

Prior to his appointment as CEO, Rahim was serving as executive vice president and general manager, Juniper Development and Innovation. Rahim started at Juniper as employee #32 and 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.

Apart from executive changes, Juniper has struggled with slowing revenue growth and pressures from activist investor Elliott Management. Last month, the company reported lower third quarter revenue and forecast fourth quarter revenue and earnings below analysts' estimates. Juniper also announced an expansion of its capital return plan, with the and board increasing the share repurchase authorization by $1.1 billion. The company announced additional cost reductions of about $100 million.

In April, Juniper said it expects to reduce its global workforce by about 6% and consolidate its facilities, as part of efforts to streamline its business structure and focus on high-growth segments under the company's integrated operating plan. Juniper' announcement came as hedge fund Elliott Management was pressing for a three-pronged shareholder value plan, comprising cost cuts, return of cash to shareholders and optimization of the company's product portfolio.

Juniper shares are currently losing 0.23% in after hours trading after closing the day's regular trading session at $21.50, down 41 cents or 1.87%. The shares trade in a 52-week range of $18.41 to $28.75.