Intel begins compiling a list of candidates for CEO to replace Gelsinger, who is the next top?
Pat Gelsinger, who has been with Intel for a total of more than 30 years and has served as CEO since 2021, retired on December 2, 2024. For the time being, Chief Financial Officer David Zinsner and Client Computing Division General Manager Michelle Johnston Holthaus will jointly serve as interim CEO, but behind the scenes, it was reported that the board of directors is steadily selecting the next CEO.
Intel approaches candidates for CEO role, including former board member Lip-Bu Tan | Reuters
Intel considers outside CEO to replace Pat Gelsinger, taps headhunters
https://www.cnbc.com/2024/12/03/intel-outside-ceo-candidates.html
Intel CEO Pat Gelsinger's Departure Opens Door to Deal Discussions - Bloomberg
https://www.bloomberg.com/news/articles/2024-12-03/intel-s-ceo-departure-opens-door-to-fresh-deal-discussions
According to a source interviewed by Reuters, the board has selected 'mainly outsiders,' including former Intel director Lip Vu Tan, as candidates for CEO and is beginning to evaluate whether they are suitable for the position. Tan served as Intel's director for two years, but suddenly resigned in 2024. Sources said he was dissatisfied with the company's expanding workforce, its attitude toward contract manufacturing, and its risk-averse, bureaucratic corporate culture, and is considered to have had a feud with the board. There are also reports that Marvel Technology CEO Matt Murphy has been approached.
Gelsinger, who announced his retirement, is an engineer who joined Intel at the age of 18 and is a veteran who has served as vice president and chief technology officer (CTO) at the company. He left Intel in 2009, but returned in 2021 and served as CEO until 2024.
Intel announces CEO Pat Gelsinger's retirement, 'thanks to my colleagues around the world who have worked with me as part of the Intel family' - GIGAZINE
According to sources, Gelsinger's decision to step down came after he was forced to choose between retirement or being fired, and the board decided that Intel's plans to turn around its performance were insufficient.
Intel's profits have been deteriorating year by year, and it has announced that it will record a loss of about 240 billion yen in the second quarter of 2024 and will cut costs by laying off employees, etc. According to Reuters, Intel's profits have fallen by nearly a third in the two years since Gelsinger took over.
Intel announces second quarter 2024 financial results, announces deficit of over 240 billion yen and cuts about 15,000 jobs - GIGAZINE
According to Bloomberg, it has been pointed out that Gelsinger was 'staunchly opposed to splitting up the company,' and some believe that his departure has paved the way for a business split or sale.
For example, sources said that Qualcomm's proposal to acquire Intel fell through because 'acquiring all of Intel's shares is complicated, making the deal less attractive,' but Bloomberg speculates that 'there is a possibility that Qualcomm may consider acquiring part of Intel's product business, etc.' Bloomberg also reported, citing sources, that Qualcomm is in negotiations to sell part of the Altera division, which Intel acquired for about $17 billion (about 255 million yen) in 2015, and that there is a possibility that Intel may sell Mobileye, which it also acquired.
The search for Gelsinger's successor is in the 'late stages,' and a committee is expected to make a final decision within the next few months. Intel declined to comment, and a representative for Tan's venture capital firm, Walden Catalyst, did not respond to Reuters' requests for comment. Marvell CEO Murphy said in the company's most recent quarterly earnings call that he is '100% focused on Marvell,' ignoring concerns over earlier reports that Intel was considering Murphy for the CEO position.
It has also been reported that a CEO may be chosen from within the company, with potential candidates including CFO Zinsner and head of product MJ Holthaus.
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