Posted By RichC on November 19, 2012
After 40 years at the helm of Intel ($INTC), CEO Paul Otellini intends to retire in May of 2012. The announcement has delayed the opening of Intel’s stock today and after a significant downturn in stock price will be another concern for investors.
Intel Corp. (INTC) President and Chief Executive Paul Otellini intends to retire in May, ending a nearly 40-year career with the chip maker.
“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,” Mr. Otellini said.
The board has begun the process of choosing Mr. Otellini’s successor and will consider internal and external candidates.
His replacement will take over the company during a shaky time for the semiconductor industry. Intel has largely been sheltered from the storms that pummeled the industry for the past year. Through a shaky global economy and supply chain disruptions, the company has remained buoyant, partly on the strength of emerging markets. But Intel reported last month its third-quarter profit fell 14% amid declining sales of personal computers and higher operating expenses, while revenue declined 5.5%.
During Otellini’s tenure as CEO, Intel said it generated $107 billion in cash from operations and made $23.5 billion in dividend payments.
The company also credited him for transforming its operations and cost structure, reinventing the personal computer with Ultrabook devices, expanding business partnerships and making strategic acquisitions that increased its presence in security, software and mobile communications.
The company promoted Renee James, head of Intel’s software business; Brian Krzanich, chief operating officer and head of worldwide manufacturing; and Stacy Smith, chief financial officer and director of corporate strategy to the position of executive vice president.
Shares closed Friday at $20.19 and were halted in premarket trading. The stock is down 17% since the start of the year.