Juniper Banks on Barclays Top Exec as New CEO

Juniper Networks (JNPR) dipped into high finance to tap Shaygan Kheradpir, the chief operations and technology officer at British banking giant Barclays, to replace outgoing chief executive Kevin Johnson. Is Kheradpir the right fit for Juniper to challenge the likes of Cisco Systems (CSCO), Hewlett-Packard (HPQ), Alcatel-Lucent (ADR) and a host of others?

Kheradpir, who joined Barclays in 2011 and was a member of its executive committee in addition to his primary operations and technology duties, joins Juniper as the company is showing strength in router sales and its service provider business. But to be successful, he’ll likely have to shore up the company’s flat switching revenue, sliding enterprise business and tepid security sales.

He’ll step into Johnson’s old job Jan. 1, 2014, and, according to a Juniper 8-K SEC filing, with $1 million in annual salary for starters. As part of his compensation, Kheradpir also is entitled to an annual cash incentive bonus of $1.75 million, $6.75 million in stock, a $10 million buyout in cash and stock of his existing incentives from Barclays and up to $15 million if Juniper’s stock price improves under his guidance. He was also granted $275,000 in moving expenses.

At Barclays, Kheradpir was credited with catalyzing the bank’s directives to focus on modern industrialization and customer service.

“Juniper Networks delivers innovations that are transforming the way people interact, conduct business and connect as a global community,” said Kheradpir. “I am honored to lead this visionary organization and look forward to working with this group of dedicated and talented professionals to drive the next phase of the company’s growth.”

Before his stint at Barclays, Kheradpir served as Verizon Communications’ (VZ) executive vice president, CIO and CTO. He was an original member of the Verizon management team and was said to be a key player with the carrier’s transition from a regional telephone company to a full-scale telecommunications provider.

“Shaygan has a proven track record of successful business operations and technology leadership, with industry knowledge and technical vision from the perspectives of both telecommunications service providers and global enterprises,” said Scott Kriens, Juniper board chairman. “Most importantly, Shaygan’s values and vision for the company align very tightly with our own, building a strong foundation for Juniper’s future.”

The timing of Kheradpir’s appointment to fill Juniper’s top slot wasn’t altogether unexpected. Johnson said at Juniper’s Q3 2013 earnings call in late October that the company was in the “later stages” of the search process. Juniper beat Wall Street estimates for the quarter, posting $1.186 billion in sales, a 6 percent uptick year-over-year, and net income of $99 million. At the same time, it disclosed a planned 3 percent layoff, which Johnson said was due to portfolio “pruning.”

The stock market didn’t greet Kheradpir with a conquering hero’s welcome, as the company’s shares lost 1.5 percent to $19.29 by the end of trading on Wednesday.