Intel (NASDAQ: INTC ) 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 company release . "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: AAPL ) 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 achieved:
- Generated cash from operations of $107 billion.
- Made $23.5 billion in dividend payments.
- Increased the quarterly dividend 181 percent from $0.08 to $0.225.
"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, Intel has:
- Transformed operations and the cost structure for long-term growth.
- 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 Intel inside.
- Grew the vast network of cloud-based computing built on Intel products.
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