May 02, 2013, 9:51 AM —
Image credit: REUTERS/Robert Galbraith
After a vetting process that lasted a little more than six months, Intel has named Brian Krzanich as its next CEO, succeeding Paul Otellini, who will officially hand over the reins of the chip giant at the company's annual stockholders' meeting on May 16.
Otellini announced Nov. 20 last year that he would retire in May after four decades with the company, of which eight years were as the company's CEO.
Krzanich, who has worked as chief operating officer and senior vice president up until now, beat other internal candidates being considered for the post, according to industry insiders. They included Stacy Smith, Intel's CFO and senior vice president and Renee James, senior vice president and general manager of software and services.
The board of directors also elected James, 48, to be president of Intel. She will also assume her new role on May 16.
All three were promoted to senior vice president on Nov. 20, the same day Otellini's retirement was announced.
"After a thorough and deliberate selection process, the board of directors is delighted that Krzanich will lead Intel as we define and invent the next generation of technology that will shape the future of computing," said Andy Bryant, chairman of Intel, in a statement Thursday.
"Brian is a strong leader with a passion for technology and deep understanding of the business," Bryant added. "His track record of execution and strategic leadership, combined with his open-minded approach to problem solving has earned him the respect of employees, customers and partners worldwide. He has the right combination of knowledge, depth and experience to lead the company during this period of rapid technology and industry change."
Analysts have said that recent CEOs at Intel were appointed at the time of directional changes for the company, whose core business of laptop and desktop chips has struggled with the slowdown in the PC market. Otellini's successor will have the task of maintaining Intel's top spot in the slumping PC market while trying to dislodge ARM from the fast-growing mobile market.
Intel's processors are used in just a handful of mobile phones and tablets, and 52-year-old Krzanich will have to a get device makers to adopt the company's mobile Atom processors. Intel has poured millions of dollars into smartphone and tablet chip development as it tries to take market share away from ARM, whose processors are used in most tablets and smartphones.