Outsiders to be considered for first time in company history
Intel Corporation announced Monday that president and CEO Paul Otellini will retire as an officer and director at the companys annual stockholders meeting in May.
According to the large semiconductor manufacturer, a search for Otellinis replacement will be conducted over the next six months. For the first time in Intels history, the Intel board of directors will include candidates from outside the company.
Otellini made his announcement during a period of sustained growth at Intels facilities in Hillsboro. Work is nearing completing on a new $3 billion research facility on the Ronler Acres Campus called D1X. Earlier this month, Intel announced plans to build a second facility the same size adjacent to the D1X facility.
Ive been privileged to lead one of the worlds greatest companies. After almost four decades with the company and eight years as CEO, its time to move on and transfer Intels helm to a new generation of leadership, Otellini said in a prepared statement.
Board chairman Andy Bryant praised his accomplishments.
Paul Otellini has been a very strong leader, only the fifth CEO in the companys great 45-year history, and one who has managed the company through challenging times and market transitions, Bryant said in a prepared statement. The board is grateful for his innumerable contributions to the company and his distinguished tenure as CEO over the last eight years.
According to Intel, the company made the following accomplishments during Otellinis tenure as CEO from the second quarter of 2005 through the third quarter of 2012:
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.
According to Intel, from the end of 2005 through the end of 2011, the company 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.
In addition, according to Intel, under Otellinis leadership, the company achieved notable successes in areas of strategic importance. During this period, Intel:
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 Ultrabookâ„¢ devices.
Greatly expanded business partnerships and made strategic acquisitions that expanded Intels 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.
In addition, the company also announced that the board has approved the promotion of three senior leaders to the position of executive vice president: Renee James, head of Intels software business; Brian Krzanich, chief operating officer and head of worldwide manufacturing; and Stacy Smith, chief financial officer and director of corporate strategy.