The virtual ink was barely dry on the press release that announced Intel Corp. (Nasdaq: INTC) president and CEO Paul Otellini's plans to retire in May 2013, when a bevy of news stories popped up speculating about who his successor might be.
As surprising as the news was that Otellini was retiring early (he's 62 and could have stayed on another three years), there may be another surprise awaiting Intel shareholders. Two of the most commonly mentioned candidates to replace Otellini are women: Renée James, head of Intel's software business, and Diane Bryant, head of its datacenter and server business.
While still unlikely, the odds that a woman could be named CEO at Intel are much higher now than just a few years ago. This year's Fortune 500 listed 18 companies led by female CEOs, a record number and up from 12 in 2011. In the tech industry -- where women are seriously under-represented -- the last three years have seen females rise to the top spots at several major technology companies.
Ursula Burns was named CEO of Xerox Corp. (NYSE: XRX) in 2009 and became chairman in 2010. Although not new to the chief executive position, former eBay CEO and California gubernatorial candidate Meg Whitman became president and CEO of Hewlett-Packard Co. (NYSE: HPQ) in September 2011. At the beginning of 2012, Virginia M. "Ginni" Rometty was appointed president and CEO of IBM Corp. (NYSE: IBM). Just recently, on Oct. 1, she added the title of chairman of the board. Then there's Marissa Mayer, who jumped ship from Google and was named CEO and president of Yahoo Inc. (Nasdaq: YHOO) in July 2012.
That's an impressive list, but notice that none are semiconductor companies. The chip business has always seemed even more male-dominated than other parts of the tech industry. I don't recall many female executives or even chip designers at semiconductor companies, much less CEOs. Intel has had five CEOs in its 44-year history, and all of them have been men.
Intel said it would look both internally and externally for the next CEO, but going outside the company is considered unlikely. If the company stays with an insider, there are five main contenders, says Arik Hesseldahl in his blog at All Things Digital.
The following three were promoted to the level of executive vice president in the same press release that announced Otellini's retirement, which was interpreted as indicating they were top contenders:
Brian Krzanich,
chief operating officer and head of worldwide manufacturing. He is considered the obvious choice, based on Intel's history of COOs moving into the CEO spot. Plus, manufacturing has always been a top priority at Intel.
Stacy Smith,
chief financial officer and director of corporate strategy. Like Otellini, Smith's background is business and not engineering, so if they are looking for an MBA type, Smith fits the bill.
Renée James,
general manager of Intel's software and services group. She is also chairman of McAfee and Wind River Systems, software companies that Intel acquired and made into subsidiaries. In fact, software has become a huge business for Intel. Revenue from software and services jumped from $264 million in 2010 to more than $1.8 billion for Intel last year. James is also a key player in Intel's relationship with Microsoft.
The other two frequently mentioned internal candidates are:
David Perlmutter,
executive vice president, general manager of the Intel Architecture Group, and chief product officer. He is responsible for all of Intel's platforms, including datacenters, desktops, laptops, handhelds, embedded devices, and consumer electronics. Of all the candidates, Perlmutter is the purest "semiconductor guy." He was general manager of the microprocessor division, then general manager of the Mobility Group, where he oversaw mobile microprocessor development, including the Centrino and, more recently, the low-power Atom.
Diane Bryant,
vice president and general manager of Intel's sales in datacenters, cloud, and servers, called the Datacenter and Connected Systems Group. The group generated more than $10 billion in revenue in 2011. According to Bryant's bio on the Intel Website, "Intel now powers more than nine of every 10 servers sold worldwide." Previously, she served as Intel's CIO.
Could Intel become the first semiconductor company to smash the glass ceiling? It would be refreshing to see the old boy network of the chip industry shaken up by a woman CEO. In fact, such male-dominated networks may have outlived their usefulness. Now that IBM and HP -- both major Intel customers -- are headed by women, the time may be right for a female CEO at Intel.
@pocharle: I'm just continuing the theme--raised elsewhere on EBN--that there is a labor skills shortage by pointing out some of the worst skills shortages are in the CEO suites. And if the answer to the problem is to check job candidates--candidates for any job--for Y chromosomes, then maybe we could blame the "labor shortage" on DNA.
In principle, no difference. In practice, no difference. CEO should be judged by how he/she treats employees, how the company is built for the future (i.e. long term), but not how the finance are being massaged to maximize personal gain. By this standard, very few of the top-100 corporations' CEOs can get a pass.
Today, many of the CEOs are practically "criminals". Most try to reward themselves as much as possible, while the livings of the employees are simply disposable to their benefit under the sugar coat of "shareholders' value". The most criminal of the last 10 years is probably the last CEO of HP. The whole HP Board of Directors, if they have any shame at all, should have resigned and returned all the compensation they were given in their past tenure. Are all these capitalism justified? Who have gained? On the other hand, the current and the past 2 CEOs at Intel consistently demonstrated their values to the shareholders and did relative much more to keep the livings of the employees intact. I hope the incoming one tries to keep up the good tradition and does'nt follow the example of HP!
Wale, The problem Intel faces is that it is a hardware manufacturer in a market that's increasingly focused more on total solutions, including software. It is a juggernaut in its market and customers don't like the idea of it dominating in new market segments.
TaimoorZ, I believe that's what Intel may be planning although I also think they will eventually still settle for a known individual rather than bring somebody in from outside the company. The very fact that they are considering external candidates may be enough to help current internal candidates understand that the era of business as usual may be over at Intel. It's a pressure tactic in my opinion.
WY, I don't think Tam Harbert was advocating for any particular candidate to lead Intel and certainly not simply because anyone of them is a woman. I believe what she tried to do was note the names of the people being considered to lead the company, which in this case included two women. That in itself is history.
If a woman was appointed to head a semiconductor company as big as Intel, you can bet it won't be because of her sex but simply based on qualifications and the company's belief that she could help make the company a better competitor. The same criteria that would apply in the case of a man would be used for women.
@The Source: Selecting the COO may have been a good option but the downside to that is the fact that he's someone from within the company and would most probably be following the policies that are already running. If you really need to shift gears and come up with out of the box stuff, it's always a good idea to bring someone from outside who can bring a fresh perspective with themselves.
Tam, now you are making sense. The subject of your article does not make any sense at all. It is because Rene is simply NOT qualified. Except for the internal politics, She achieved little in her years at Intel despite of the billions of investment. On the other hand, David demonstrated consistently a vision, understandings of the technology and what the future looks like. Don't, please don't arbitrarily use any title subject simply because it raises eyebrows. Had Rene James demonstrated the quality of Bill Gates, she was qualified to lead Intel. In fact, I believe that Rene should be fired. This will save millions of dollars and the money can be better used as bonus to stimulate leading thoughts and technologies for Intel to better compete in the market!
The new CEO would have to keep Intel's market growth rate and/or even improve on its market segment in microprocessor. It's highly imperative to have core understanding of both the market's driver and conductor of this technology era - Internet and mobile devices. Every successful OEM has to build its market model around these two ingredients, i think.
Qualcomm has launched a big push to spread its cellular technology, and thus increase its royalty income, not to mention chip sales, beyond mobile phones.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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