Intel Considers External Hire for New CEO Following Pat Gelsinger’s Ouster
Intel is currently exploring the possibility of hiring an external candidate to fill the CEO position, a significant departure from its longstanding practice of promoting from within. This decision follows the recent ousting of Pat Gelsinger, the company’s former CEO, who faced challenges in steering the tech giant back to competitiveness against rivals like Nvidia. To assist in this search, Intel has enlisted the services of the executive recruitment firm Spencer Stuart.
According to sources familiar with the situation, Intel’s board has also approached Lip-Bu Tan, a recently departed board member, to gauge his interest in the top role. This move highlights the company’s urgent need for renewed leadership as it navigates a difficult landscape in the semiconductor industry.
Breaking Tradition
The prospect of bringing in an outside CEO is notable, given Intel’s historical preference for internal promotions. While Gelsinger was hired from VMware in 2021, he had an extensive background at Intel, having spent decades in various senior roles. His predecessor, Bob Swan, was Intel’s first true external hire, but many viewed him as a temporary solution, particularly after he was dismissed amid pressure from activist investors.
Potential Candidates
While the complete list of candidates remains undisclosed, reports indicate that Matt Murphy, the CEO of Marvell, is among those being considered for the role. The search for a new leader is being overseen by interim executive chair Frank Yeary and a dedicated board committee, although the process is still in its early stages.
Internal Options
Despite the focus on external candidates, there remains the possibility of an internal promotion. Candidates from within the company could include David Zinsner, the Chief Financial Officer, or MJ Holthaus, the head of Intel’s product division, both of whom are currently serving as interim co-CEOs.
Severance and Future Directions
Intel’s decision to part ways with Gelsinger was abrupt, as the board reportedly lost confidence in his ability to revitalize the company. According to regulatory filings, Gelsinger is set to receive approximately $10 million in severance pay. As Intel moves forward, the search for a new CEO is crucial, particularly as the company seeks to regain its footing in a rapidly evolving market.
