Lucent promises a profit soon

The telecom boss also reassured investors at a shareholder meeting on Wednesday that the company would return to profitability this year.

Ms Russo will replace Henry Schacht, who is retiring but will remain a director. The move was not unexpected.

Shareholders in Lucent also voted to allow the company's board to approve a proposed reverse share split.

Avoiding a delisting

The split would consolidate Lucent stock in an effort to raise its share value. Rather than holding, say, 15 shares worth $1, an investor would have 1 share at $15.

The move is designed to prevent the company from being delisted on the New York Stock Exchange, which sets a minimum value on the shares which can be traded.

But Ronald Redfield, a partner at Redfield, Blonsky & Co and a Lucent shareholder, said: "The company's ultimate success is not going to be determined by a reverse split.

"If the company survives, that will obviously be the main positive for investors, and a reverse split will drive out the weak holders."

The struggling technology giant reported a loss of $264m (�164m; 246 euros) in the quarter ending in January.

This was significantly lower than the $423m lost in the same three months a year earlier.

But despite failing to return to profitability, the company insists that the worst of the slump is over.