Lucent replaces Schacht with Pat

Lucent Technologies has named former executive Patricia Russo as its new president and chief executive.

Russo, who spent 20 years with AT&T and Lucent before becoming second-in-command at Eastman Kodak last April, returns to the company where she was one of the founding executives of the 1996 spin-off from AT&T.

She clearly faces a daunting task, but Lucent is hoping that her history at the company will help her get up to speed very quickly.

Chairman Henry Schacht, who doubled up as Lucent's caretaker boss, said in a statement: "Pat has all the skills Lucent needs right now. She has strong management, operations and leadership experience."

Schacht, who served as interim chief executive after Richard McGinn was dismissed in October 2000, will stay on as interim chairman for a year.

"Henry and the team have put in place, and are implementing, a solid credible plan for turning this business around," said Russo. "Lucent and this industry have always been a home to me and I look forward to working with this team to accelerate the execution of our plan."

While at AT&T and Lucent, Russo served as Lucent's executive vice president of corporate operations from 1997 to 1999. In that post, she succeeded former colleague and current Hewlett Packard chief executive Carly Fiorina.

Russo was also president of Lucent's business communications systems unit from 1992 to 1996. In this position she executed the turnaround of a $6bn enterprise communications business, Lucent's second largest division, which was later spun off as Avaya.

Russo's selection signals the company's eagerness to return to its better days of being the premier supplier of phone equipment in the US.

However, having left the firm just nine months ago, investors may wonder if she is far enough removed from McGinn's regime, which is now blamed for Lucent's ongoing troubles.

The company cut about 39,000 jobs from the 106,000 workforce last year, and said last month that it would post a bigger loss than Wall Street expected for its first fiscal quarter, with revenues just half what they were a year ago. The figures will be announced on 22 January.