Frans van Houten was born on April 26, 1960, in the Netherlands. He is a Dutch businessman who served as the CEO of Philips until 2022, when he was replaced. Van Houten led the company for twelve years, during which he transformed its vision and strategy—actions that increased profitability and redefined Philips’ market position.
He joined the Eindhoven-based company many years ago and steadily climbed the ranks until becoming CEO. During his leadership, Philips built a strong foundation in the healthcare sector with technological innovations that reshaped the industry.
How Van Houten’s journey began
Frans van Houten studied Economics at Erasmus University Rotterdam. After obtaining his undergraduate degree, he completed a Master’s in Business Management, further solidifying his academic foundation.
Interestingly, one of his first professional experiences—lasting for several years—was at Philips. The Dutch company is known for its work in electronics and healthcare, offering solutions that integrate technology into medical assistance.
In the decades from the 1960s through the 1990s, Philips was known for products such as records, televisions, computers, and energy systems. Van Houten joined the organization in 1986, working in marketing with a focus on sales.
One of his early achievements at Philips came through television sales. At the time, the company reported over 100 million units sold—a significant milestone in consumer electronics.
However, those achievements would pale in comparison to what came next. In the 1990s and early 2000s, Van Houten—still young and relatively inexperienced—began making his mark in Philips’ newly emerging healthcare market.
How did he do it? With gradual steps. By 2002, after years of incremental advancement, he became Director of the Electronics Divisions. Two years later, he was appointed head of Philips Semiconductors, a key unit of the company focused on semiconductor manufacturing. He held that role for four years, paving the way to the greatest opportunity of his professional life.
CEO of Philips
July 8, 2010, marks a pivotal moment in Van Houten’s career, when he was officially named CEO of Philips to lead its strategic push into healthcare. Around the same time, the company sold half its assets related to televisions and consumer electronics.
In 2011, shortly after his appointment, Philips radically shifted its vision—the long-term aspiration of the company. As CEO, Van Houten committed to transforming the company’s paradigm, directing all focus toward healthcare technology.
In this process, Philips literally divested from consumer tech products like lighting, TVs, and computers, refocusing on medical innovation. This bold move required substantial investment at first but ultimately delivered strong returns.
Data confirms this shift: since embracing the healthcare market, Philips’ valuation rose by 78%, with significant growth in profit margins. This doesn’t imply that the previous strategy was incorrect, but rather that Van Houten identified a market opportunity few had seen.
In the following years, Philips formed partnerships with other healthcare-sector companies, allowing the Dutch firm to invest in machinery, research, and development while collaborating with elite medical centers worldwide.
Awards and a focus on sustainability
As climate crises demand more corporate responsibility, businesses must embrace sustainability. Van Houten did so through circular economy practices, aiming to reduce waste and add value to discarded products.
In 2018, he received the Fortune Circular Economy Award, honoring Philips’ efforts in resource optimization and recycling innovation. The year before, Fortune had already ranked him among the world’s top 20 most influential business leaders.
Van Houten stepped down from his role in 2022 after a turbulent final period at Philips. Nevertheless, his long-term vision for 2030 remains: positioning Philips as the global leader in healthcare and technology.