Published: Sun, July 08, 2018
Business | By Eloise Houston

ZTE replaces its CEO and other top execs

ZTE replaces its CEO and other top execs

Li Ying was also appointed chief financial officer.

As part of the agreement, the Commerce Department will impose a $1 billion penalty against ZTE, and a USA -selected compliance team will be embedded in the firm for 10 years.

This comes after the Commerce Department's Bureau of Industry and Security on Monday granted a waiver to some companies doing business with ZTE from July 2 to August 1. The statement confirmed a notice issued by BIS earlier this week.

The Commerce Department announced last month that it would lift penalties on ZTE, which had previously faced the US sanctions for selling materials to Iran and North Korea.

The deal, brokered by the Trump administration and signed on June 6, requires the smartphone maker to pay a $1 billion fine, place $400 million in escrow as insurance against future breaches and replace its senior management and board of directors. Five executives, including Xu Huijun, Zhang Zhenhui, Pang Shengqing, Xiong Hui and Shao Weilin, have been removed from executive vice president posts. The company's installment of new leadership comes just a few days after its previous board of directors resigned.

Board members unanimously voted in Xu Ziyang, who was most recently in charge of the firm's wireless-network products, to replace Zhao Xianming, according to a Hong Kong stock exchange filing. A new CFO, CTO and head of HR have been named, as well, according to The Wall Street Journal.

Some employees Reuters spoke to have expressed concerns about whether a new board and management could settle in smoothly to successfully revive the firm without the help of veterans.

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