Chinese telecom equipment maker ZTE Corp has appointed a new team of top executives, including a CEO, to comply with a deal it made with the United States to end a US components supply ban.
ZTE announced on Thursday that it has appointed Xu Ziyang, a former head of the firm’s Germany business, as its new chief executive, Reuters reports.
Wang Xiyu, Gu Junying, Li Ying, have been named executive vice presidents, the report said, citing a regulatory filing. Li Ying will also serve as chief financial officer.
The move comes after ZTE had promised to overhaul its management within 30 days of agreeing to a US$1.4 billion settlement with US authorities in June, aimed at lifting a seven-year supplier ban.
ZTE, which relies on US suppliers for core components, had to cease major operations in April after authorities imposed the ban, saying the firm broke an agreement to discipline executives who conspired to evade US sanctions on Iran and North Korea.
As part of the settlement, ZTE agreed to pay a US$1 billion fine, put US$400 million in escrow, and hire a US-appointed compliance monitor.
It also agreed to replace its board, remove all members of its leadership at or above senior vice president level along with any executives associated with the wrongdoing, and punish responsible executives.
Zhao Xianming is no longer company’s CEO, ZTE said in a filing Thursday.
Five executives including Xu Huijun, Zhang Zhenhui, Pang Shengqing, Xiong Hui and Shao Weilin have been removed from executive vice president posts.
The new management appointments come after ZTE last week elected a new board led by 54-year-old Li Zixue as chairman to replace a 14-person board led by Yin Yimin, Reuters noted.
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