Intel revealed Nov. 19 that its president and CEO Paul Otellini will retire from the world's largest processor maker next May following the company's annual stockholders' meeting.
Intel is the only company at which Otellini, 62, has worked in his professional career. His retirement will end a span of seven years in the chief executive position and nearly 40 years of continuous service to the company.
Otellini sits on a few other corporate boards, including that of Google.
The board of directors will immediately begin the process of choosing Otellini's successor. The company said it will consider internal and external candidates for the job.
Only the Fifth CEO in Company History
"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 board chairman Andy Bryant. "The board is grateful for his innumerable contributions to the company and his distinguished tenure as CEO over the last eight years."
Otellini is a native San Franciscan and a graduate of two revered Jesuit institutions: St. Ignatius Loyola High School and the University of San Francisco. He also holds an MBA from a school across the San Francisco Bay, the Haas School of Business at the University of California, Berkeley.
"I've been privileged to lead one of the world's greatest companies," Otellini said. "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," he said.
Intel also announced that the board has approved the promotion of three senior leaders to the position of executive vice president: Renee James, head of Intel's software business; Brian Krzanich, chief operating officer and head of worldwide manufacturing; and Stacy Smith, chief financial officer and director of corporate strategy.
Tenure Marked by Steady Growth at Intel
Investors have to be satisfied with the job with Otellini did. During his tenure as CEO, from the second quarter of 2005 through the third quarter of 2012, Intel generated cash from operations of $107 billion, made $23.5 billion in dividend payments, and increased 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.
In addition to financial performance, Intel, under Otellini's leadership, achieved successes in areas of strategic importance. During this period, the company:
- 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;
- was instrumental in reinventing the PC with Ultrabook devices;
- expanded business partnerships and made strategic acquisitions that expanded Intel's presence in security, software and mobile communications; and
- delivered the first smartphones and tablets for sale with Intel inside.