Leadership transitions are a natural part of the business cycle. However, when high-level vacancies are unexpected, companies can be left scrambling to react.
For instance, The Wall Street Journal recently reported that Intel CEO Paul Otellini has announced his impending retirement. This move came as a surprise, as the 62-year-old had been expected to retain his position until he reached age 65, at which point retirement would be mandatory under the company’s rules.
In a press release, an Intel spokesman stated that “the decision was entirely Paul’s,” and that the company’s board “accepted his decision with regret.”
The forced leadership transition comes at a critical moment for Intel, with rising sales of smartphones and tablets leading to reduced demand for the PC chips that make up the core of the company’s business. Although the chip-maker has been positioning itself to compete more effectively in the shifting market, it will continue to face significant competitive pressure on price and performance as it seeks to adapt.
The Journal suggests that Intel has historically shown a strong preference for promoting experienced internal talent to top leadership positions, with all five of the company’s chief executives having been promoted from within the company. However, Otellini’s presumed heir, Sean Maloney, has announced plans to retire after suffering a stroke.
The company is now reportedly looking at a number of candidates to replace its outgoing CEO, including professionals from both in and outside of the business.
Whether a company finds itself in a contingency situation due to an unexpected departure or is looking to find a long-term replacement for a sitting corporate officer, recruitment firms can aid in the conduct of a fast, effective executive or financial professional search.