Intel Corp. (NASDAQ: INTC) has announced the transition of a legendary chief executive. President and CEO Paul Otellini has announced his intention to retire as an officer and director at the company's annual stockholders' meeting in May of 2013. This is said to be the start of an orderly leadership transition over the next six months.
While shares have been battered of late, and while Intel has fallen behind in the mobile processing market, Otellini has been with Intel for nearly 40 years. The past eight years have been as CEO, and Otellini is only the fifth CEO of this processor giant.
The explanation was that it was time to move on and transfer the helm to a new generation of leadership.
The board of directors will conduct the process to choose Otellini's successor and will consider internal and external candidates for the job. Otellini is said to be available as an adviser to management after retiring as CEO.
Intel also announced that the board has approved the promotion of three senior leaders to the position of executive vice president:
Renee James, head of Intel's software business
Brian Krzanich, chief operating officer and head of worldwide manufacturing
Stacy Smith, chief financial officer and director of corporate strategy
What is interesting about this is that there is effectively a six-month transition period and the actual reason for the retirement was not clear. This seems like a situation where another restructuring may be coming down the pipe as Intel has to go increasingly after the mobile market.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Corporate Governance, Management Change, Semiconductor, Technology, Technology Companies Tagged: featured, INTC