Deutsche Telekom wants to integrate its American unit T-Mobile US more closely, sources familiar with the matter told Germany's Manager Magazin. This could mean the departure of CEO John Legere soon after the merger with Sprint is completed.
Some on Deutsche Telekom's supervisory and management boards are not comfortable with the distance of the US unit, which accounts for over half the group's profit. The works council representative on the supervisory board, Josef Bednarski said he was convinced that T-Mobile US had to be more closely integrated. This requires changes to the corporate structure.
Another unnamed source said integrating the US subsidiary was a "central question" for the company. To date, the supervisory board of the German company has not had a say on remuneration negotiations with the US management. Insiders said there was no plan yet to change the structure, and first the merger with Sprint will need to be completed.
Once the merger is resolved, T-Mobile US CEO John Legere is expected to leave the company soon after. He successfully transformed the US subsidiary and prepared the way for the merger. Legere has done his job, according to the management. The most likely successor is considered to be Mike Sievert, COO and President of T-Mobile.
