Philips plans to propose extending CEO Roy Jakobs' leadership through 2028, citing improved profitability under his stewardship since October 2022. The Dutch health-tech firm will seek shareholder approval for the reappointment later this year, signaling confidence in Jakobs' turnaround strategy.

Jakobs inherited a company reeling from a global recall of respiratory devices that erased €1.5 billion from market value. His cost-cutting measures and refocus on core medical equipment helped Philips shares regain 40% since January 2023 lows, though they remain 60% below 2021 peaks.

The proposed extension reflects board satisfaction with Jakobs' operational overhaul. Investors will scrutinize the vote as Philips navigates ongoing litigation and supply chain challenges in its medical technology division.