) has announced that its Chief Executive Officer, Paul Otellini,
will retire in May. The board of directors is currently in the
process of choosing Otellini's successor. Both internal and
external candidates are being considered.
"I've been privileged to lead one of the world's greatest
companies," Otellini, who joined Intel in 1974, said in a
. "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, and to being available as an advisor to management after
retiring as CEO."
Otellini's departure comes at a difficult time for Intel.
Year-to-date the company is down nearly 18 percent, plunging five
percent in the last month alone. While he was reported to have
been a key driver behind Apple's (NASDAQ:
) decision to switch to Intel processors, the company made no
mention of this in its list of accomplishments. Rather, Intel
focused on the big, headline-grabbing numbers that Otellini
- Generated cash from operations of $107 billion.
- Made $23.5 billion in dividend payments.
- Increased the quarterly dividend 181 percent from $0.08 to
"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 Andy Bryant, chairman of the board, who was
also quoted in a company release. "The board is grateful for his
innumerable contributions to the company and his distinguished
tenure as CEO over the last eight years."
Intel credits Otellini with achieving record revenue (which
grew from $38.8 billion to $54 billion) and net income from the
end of 2005 through the end of 2011.
The company also praised his success in areas of "strategic
importance," adding that in the time since Otellini arrived,
- Transformed operations and the cost structure for long-term
- Achieved breakthrough innovations, including High-K/Metal
gate and now 3-D Tri-gate transistors; and dramatic improvement
in energy efficiency of Intel processors.
- Reinvented the PC with Ultrabook devices.
- Greatly expanded business partnerships and made strategic
acquisitions that expanded Intel's presence in security,
software and mobile communications.
- Delivered the first smartphones and tablets for sale with
- Grew the vast network of cloud-based computing built on
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