Paul Otellini has decided to retire as the CEO and president of Intel in May to start the company’s six-month leadership transition, said the world’s largest chip maker in a handout given today.
“I’ve been privileged to lead one of the world’s greatest companies,” said Otellini. “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.”
“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, Intel. “The board is grateful for his innumerable contributions to the company and his distinguished tenure as CEO over the last eight years.”
Intel said its board of directors will carry on the process to pick the right replacement and will look at internal and external candidates.
With Otellini leaving, the company also revealed the board’s approval to promote three senior leaders to executive vice president (EVP): Renee James, head of Intel’s software business; Brian Krzanich, chief operating officer (COO) and head of worldwide manufacturing; and Stacy Smith, chief financial officer (CFO) and director of corporate strategy.
Otellini’s incumbency as CEO started from the second quarter of 2005 to the third quarter of 2012. It helped Intel generate cash from operations of $107 billion, make $23.5 billion in dividend payments, and increase the quarterly dividend 181 percent from $0.08 to $0.225
From the end of 2005 through the end of 2011, Intel achieved record revenue and net income. During this period, annual revenue grew from $38.8 billion to $54 billion, while annual earnings-per-share grew from $1.40 to $2.39.
Otellini’s tenure as CEO and president saw him transform operations and the cost structure for long-term growth; achieve breakthrough innovations, including High-K/Metal gate and now 3-D Tri-gate transistors; dramatic improvement in energy efficiency of Intel processors; reinvent the PC with Ultrabook devices; expand business partnerships and create strategic acquisitions to expand Intel’s presence in security, software and mobile communications; deliver the first smartphones and tablets for sale with Intel inside; and grow the vast network of cloud-based computing built on Intel products.