Intel Corporation, the world’s foremost chipmaker, will likely look
outside its walls when president and CEO Paul Otellini retires next May.
The move would end a 45-year tradition of promoting a current Intel employee to the boss’ chair.
Despite the Intel board’s statement it would consider both internal
and external candidates for the top spot, Wall Street analysts are
predicting the company will fill the vacancy with fresh blood.
Intel spokesman Chuck Mulloy told Bloomberg at “any company of the
size and complexity of Intel, an internal candidate would have a natural
advantage. Good corporate governance dictates today you should look
inside and out.”
According to The Telegraph, analysts say Intel needs someone to
devise an aggressive mobile strategy for the firm that has been hit hard
by the dwindling popularity of the personal computer.
That someone, analysts have said, needs to be a newcomer.
Otellini’s retirement will become official at the company’s annual
stockholders’ meeting in May, “starting an orderly leadership transition
over the next six months,” the company said in a statement.
“Paul Otellini has been a very strong leader, only the fifth CEO in
the company’s great 45-year history, and one who has managed the company
through challenging times and market transitions,” said board chairman
Andy Bryant in the company statement. “The board is grateful for his
innumerable contributions to the company and his distinguished tenure as
CEO over the last eight years.”
Otellini’s tenure as CEO has been a profitable time for Intel.
From the end of 2005 through the end of 2011, Intel achieved record
revenue and net income — annual revenue grew from $38.8 billion to $54
billion and annual earnings-per-share rose to $2.39 from $1.40.
Otellini will not disappear from Intel with retirement, however. He
has said he plans to be “available as an advisor to management after
retiring as CEO.”
“I’ve been privileged to lead one of the world’s greatest companies,”
Otellini said in the company statement. “After almost four decades with
the company and eight years as CEO, it’s time to move on and transfer
Intel’s helm to a new generation of leadership. I look forward to
working with Andy, the board and the management team during the
six-month transition period.”
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