Intel CEO Paul Otellini to step down in May after 8 years
updated 10:40 am EST, Mon November 19, 2012
Six-month search for replacement Intel chief begins for board
It has been announced that Intel CEO Paul Otellini will be retiring from the chip manufacturer in May 2013. He will be moving on from his eight-year term as the fifth CEO in the company's 45-year history into the role of an adviser to Intel's management team, continuing his almost 40-year association with the manufacturer.
In a statement released by the company, Otellini said he has been "privileged to lead one of the world's greatest companies." In his tenure as CEO, he helped Intel generate $107 billion in cash from operations, make $23.5 billion in dividend payments, increase the quarterly dividend by 181 percent, and grow the annual revenue from $38.8 billion to $54 billion. Also during this time, the company has grown its cloud-based computing efforts, stepped up its acquisition rate and the number of business partnerships, and saw breakthrough innovations in processor technology, such as the High-K/Metal gate and 3-D Tri-gate.
The company now has a six-month transition period before Otellini's retirement. In this time, the board of directors have to find his replacement, as well as manage the also-announced promotions to executive vice president for three employees: head of Intel's software business, Renee James; chief operating officer and head of worldwide manufacturing, Brian Krzanich; and chief financial officer and director of corporate strategy, Stacy Smith.
Whomever replaces Otellini will have a tough job on their hands. With a swathe of ARM-based processors dominating smartphones, the chip maker has started putting its Intel Inside logo onto smartphones using its mobile processors, while it works on other Medfield-class Atom chip designs. In terms of desktop computing, the company has to worry about Apple moving away from Intel and creating its own chips, after repeated threats to switch over the years. The recent success of the custom-designed A6 in the iPhone 5 could bring Apple to a point where it is comfortable designing its own desktop processors, replacing Intel's offerings.
