Vell Executive Search Update
Read about Third Quarter 2010 Technology board and executive moves
In the third quarter 2010, overall public company CEO and CFO departures become more rare.
Liberum Research shows a 27 percent drop in third quarter 2010 CEO changes and an 8 percent dip in CFO changes. Overall, C-suite changes declined 32 percent in the third quarter over the year-ago period.
Still, there is plenty of activity in other executive management ranks. Hot skill sets sought after during the third quarter include:
- Online business-to-consumer: eBay, Dell, Activation Blizzard, Akamai, Logitech and countless others made executive moves that show they understand the importance of capturing online consumers.
- Online payments: Amex and Tier Technologies are two companies whose recent hires demonstrate an understanding that the online payment space is heating up.
- Mobile and security: The demand for experience in these sectors is manifesting in companies as diverse as F5 Networks, Real Networks and Isolon.
- Business Intelligence: Analytics remain a core focus, with companies like Teradata making key hires on this front.
Public sector experience and communication with D.C. was a running theme in third quarter. Tech companies are moving to beef up teams, adding retired U.S. Generals to their boards, and placing savvy senior executives in charge of government relations. Last quarter’s theme of separating the Chair and CEO roles continued over the past three months. All the while, storage companies made plenty of changes at the board levels. This appears more like an effort to grow and add skills than restructure as the market becomes more competitive.
We hope you find our newsletter of value. We are adding additional entries to our blog over the next couple of weeks that support these themes within the management teams of smaller companies and other different roles in the larger companies.
All the best,
Vell Executive Search
HP, Oracle Swap Dance Cards
In what is becoming a never-ending drama, newly anointed Hewlett-Packard Chairman Ray Lane is calling former chairman, president and CEO Mark Hurd on the carpet. Lane says Hurd “repeatedly lied” to HP’s board during the investigation into accusations of sexual harassment against him.
The new accusations come just as the dust was beginning to settle on the high-tech high drama between Oracle and HP. High points of the drama include Hurd’s forced resignation from HP, followed by a letter to The New York Times from Oracle CEO Larry Ellison bashing HP for dismissing his friend.
The drama continued to stir after Ellison hired Hurd as the company’s new co-president, followed by an HP lawsuit against Oracle for the move, and an eventual settlement and reassurance that Hurd would not disclose any HP trade secrets to Oracle. It seems an Oct. 8 New York Times column got Lane's goat and reopened the drama.
The Times column explored HP’s decision to appoint Léo Apotheker CEO and Hurd’s successor. Apotheker spent most of his career at SAP, which competes head-on with Oracle. It may have seemed like a slap in Oracle's face—and may have been intended that way—though some analysts see Apotheker as a strong choice in a hardware world where software is increasingly important.
“Is it possible that the hiring of Mr. Apotheker was motivated by the board’s desire to strike back at Oracle? And that, with Mr. Apotheker on board, HP would try to encroach on Oracle's software stronghold just as Oracle was moving into HP's hardware arena? There are analysts who are convinced that was the case,” New York Times columnist Joe Nocera wrote.
Lane has insisted publicly that such notions are untrue. And that’s when the accusations came. Lane wrote a letter to the Times that stated, “Mr. Hurd violated the trust of the board by repeatedly lying to them in the course of an investigation into his conduct.”
Now news has emerged that Oracle plans to call Apotheker to testify in its lawsuit against SAP. According to The Wall Street Journal, Apotheker has been named a witness. Lane also spoke out about that decision: “It didn’t even deem him relevant enough to the case to include him on a list of witnesses for trial -- until, that is, Mr. Apotheker was named CEO of HP and Oracle had other motives to try to tie him to the case.”
Looking past all the drama, Oracle gets the perfect executive to integrate a hardware acquisition to the software and services vendor and HP gets an Oracle and an SAP insider. With the shake up, HP’s board is finally supporting the software strategy of both former CEOs Carly Fiorina and Hurd. Lane, who probably did not want to take on the operational role as CEO, is sure to be a thorn on Ellison’s side with his appointment as Hurd is a thorn on HP’s board side. Apotheker’s hiring as CEO was not hailed by most analysts, but there are strong supporters. Ultimately, the chemistry with Lane will be key in whether the duo will be effective.
Other appointments at HP:
- Connie Guglielmo as VP of Corporate Communications, formerly of Bloomberg News, Interactive Week, and MacWeek. This appointment was made in September after Hurd’s team outmaneuvered the board.
- Mark Angelino as SVP of Global Distribution for the $54 billion HP Enterprise Business. Prior to this appointment, Angelino was at Salesforce.com, Sprint Nextel, Sprint Business Solutions and IBM.
- Ahmed Mahmoud SVP of Global Information Technology, formerly of AMD, Dell and Oracle.
IBM Eyes Palmisano Successor (Market cap: $173 billion)
The succession chances of Robert Moffat, 54, long-believed to be the heir apparent to IBM’s CEO, were swept away with the high profile case in which Raj Ratnam of Galleon Management was charged with insider trading. Four executives roles at IBM were quickly expanded and the rumor mill started churning about which exec would take the helm after IBM CEO Sam Palmisano, 59, retires.
There are seemingly three IBM execs in the running. The new heir apparent is Virginia Rometty, 52, SVP of Global Sales and Distribution. Her recently expanded duties include head of marketing and strategy. But another strong candidate is Michael Daniels, 55, who ran part of Big Blue’s services group business, and is now running the whole show. SVP of Global Services Steven A. Mills, 58, is close in age with Palmisano. He has run IBM’s software business and is now adding IBM’s Systems and Technology Group to his portfolio. Finally, Mark Loughridge, 56, is in the running. He is CFO with an added title of SVP and new transformational responsibilities.
Why so much speculation? Because Palmisano is about to turn 60. Requiring the CEO to retire near age 60 is a very outdated rule in my opinion. Many of these so-called silver foxes are in their business prime and the contributions they can make as operational executives are second to none. Plenty of examples of this exist, such as Bill McCracken, 67, CA’s new CEO. Media reports have pegged Rometty as the most likely successor and they are probably right. She is probably the one with the most “run room” to succeed Palmisano. But why should Palmisano go anywhere else anytime soon? He is delivering results in a highly complex technology world.
Microsoft Makes Trio of Promotions to Replace High-Profile Departures
Microsoft promoted Kurt DelBene, 50, to president of its Office Division, Andy Lees, 45, to president of its Mobile Communications Business, and Don Mattrick, 46, to president of its Interactive Entertainment Business. Former heads of the entertainment and mobile divisions Robbie Bach, 48 and J. Allard, 41, left Microsoft earlier this year. Splitting the entertainment and mobile divisions makes a lot of sense as both are huge initiatives in their own right.
EMC and Microsoft Add Heavyweights to Technical Ranks
Microsoft is drawing from the Defense Advanced Research Projects Agency (DARPA) for its Managing Director of Microsoft Research. Dr. Peter Lee was previously head of Carnegie Mellon University’s computer science department and is well known for co-developing proof-carrying code techniques for enhanced software security and techniques for ultra-secure file systems. Meanwhile, Jeetu Patel, a former partner of Doculabs, was appointed CTO of EMC’s Information Intelligence Group. Patel is a recognized authority on enterprise content management, and business process management.
eBay Makes Fashion Push in Marketplaces (Market cap: $29.33 billion)
Michael Jones was named VP of North American business development at eBay Marketplaces. Jones previously served as CRO and COO of e-commerce solutions firm ChannelAdvisor and had been at AuctionRover.com. His main task is to attract new retailers and manufacturers to eBay with a special focus on fashion.
E-commerce entrepreneur Miriam Lahage becomes the company’s first GM of eBay Fashion. Prior to this role, she served as a consultant to Net-a-Porter’s Natalie Massenet. She previously launched Koodos.com, which sold to E-Trader Group. Lahage has a long career at TJX culminating as a senior executive in merchandising and general management.
Dell Promotes Female CMO (Market cap: $25 billion)
Karen Quintos, a 10-year veteran Dell marketing executive, was appointed SVP and CMO. She previously served as VP of marketing for Dell’s global public business and also for the Americas commercial business. Quintos’ background includes serving as Citigroup’s SVP of global operations and technology and at Merck in various roles. She succeeds Erin Mulligan Nelson, who is joining Bazaarvoice, a SaaS for social commerce solutions. Nelson is hailed as a social marketing innovator and marketing champion.
HP’s new CEO and Chairman announcement certainly got a lot of press. There were, however, many other notable but quieter appointments.
Amex Board Elects Internet Pioneer (Market cap: $50.94 billion)
American Express Company has elected Ted Leonsis to its board of directors. Leonis will serve as chairman of the board’s new Innovation and Technology Committee. Leonis is a businessman, Internet pioneer, professional sports team owner, venture capital investor, and a committed philanthropist. He has had various senior roles at Revolution Money, AOL, Snaggilms, and Redgate Communications.
SAP Appoints First Woman to Board (Market cap: $60 billion)
SAP named Dr. Angelika Dammann to its Executive Board, leading the global human resources function and serving as labor relations director. Dammann was formerly at Unilever DACH.
Juniper Networks Board Names Schlotterbeck (Market cap: $15 billion)
David Schlotterbeck, 62, was named to Juniper’s board of directors and will serve on the audit committee. He is Chairman and CEO of medical technology firm CareFusion and formerly CEO of Clinical and Medical Products for Cardinal Health. He has also held executive roles at Alaris Medical Systems, Pacific Scientific Company, Vitalcom, and Nellcor.
SanDisk Sees Shakeup at Helm, Separates Chair and CEO Roles (Market cap: $8.82 billion)
After 22 years of service—and after growing SanDisk from start-up to a $3.6 billion enterprise—Dr. Eli Harari, 64, founder, Chairman and CEO, retires at the end of the year. Sanjay Mehrotra, 51, who is currently president and COO, will take on the CEO title. Michael Marks, a member of the board since 2003, will assume the role of Chairman, effective January 1, 2011. Marks is president of private equity firm Riverwood Capital, and formerly was CEO of Flextronics for 12 years.
F5 Networks Board Names Chapple (Market cap: $7.95 billion)
F5 Networks named John Chapple, 57, president of Hawkeye Investments, to its board. Chapple brings key experience to F5. He previously served as president, CEO and Chairman of the Board of Nextel Partners and had senior executive roles at McCaw Cellular Communications, AT&T Wireless Services, and American Cablesystems. Chapple is the past Chairman of Cellular One Group, the PCIA and CTIA. Chapple currently serves on the board of Leap Wireless, Cbeyond, SeaMobile, and Telesphere.
Teradata Board Appoints Two Software Execs: Veteran CEO and Software CFO (Market cap: $6.23 billion)
Data warehousing giant Teradata appointed John Schwarz, 59, former CEO of SAP BusinessObjects and president of Symantec. Also a former IBM Executive, Schwarz is now CEO of Visier, an analytics software company.
Nancy E. Cooper, 56, EVP and CFO of CA, was also appointed to the board. She was formerly CFO of IMS Health, and has held roles at Reciprocal, Pitney Bowes Credit, General Atlantic partners, and IBM.
Red Hat Names U.S. Army General as Chairman (Market cap: $6.99 billion)
U.S. Army General H. Hugh Shelton, 68, was named Chairman of the famed Linux operating system maker. He has served on the board since 2003. He succeeds former Red Hat CEO Matthew Szulik, 63, who stepped down. Also, a VP of corporate affairs and public policy was appointed. The new appointment was formerly with the U.S. Department of Commerce in D.C.
Logitech Board Elects Online Engineering Superstar (Market cap: $2.83 billion)
Logitech International has elected 44-year-old Neil Hunt, chief product officer of Netflix, to its board. Hunt has been instrumental in architecting and building the online movie’s website architecture, personalization and user experience.
CGI Director Swap (Market cap: $3.5 billion)
David Johnson, 68, resigned from the IT services provider’s board because he was appointed Canada’s Governor General Designate. Richard B. Evans, 62, former CEO of Alcan and accomplished Aluminum executive, joined the board.
Lexmark Names Two Directors (Market cap: $2.67 billion)
The printer, ink and toner, and accessories company named Edward Coleman, 58, to its board. Coleman is Chairman and CEO of Unisys Corporation, and former CEO of Gateway. He previously served as a senior exec with Arrow Electronics and as CEO of CompuCom Systems. Jared Cohon, 62, president of Carnegie Mellon University, was also named.
Qlogic Makes Unusual Appointments (Market cap: $1.79 billion)
Storage area networks firm Qlogic appointed two executives with strong storage connections to its board. This is very unusual move that could signal closer partnerships with these companies. Bill Zeitler joins the board. He spent 35 years at IBM in various roles before retiring in 2008. Prior to his retirement, Zeitler was SVP and Group Executive in the Servers, Storage and Semiconductor Groups. Qlogic also appointed Scott Mercer, 58, to its board. Mercer is chairman and CEO of semiconductor company Conexant Systems. He also serves on the board of Hitachi Global Storage Technologies and Polycom.
HMS Appoints Crisis Management Expert (Market cap: $1.47 billion)
Health Management Systems (HMS) has named Bart Schwartz, 57, to its board. He is an international expert in corporate compliance, corporate monitoring, and crisis management. He also serves as Chairman of Guidepost Solutions, a global investigations, intelligence and security company. He launched and served as CEO of Decision Strategies, an international investigative and security firm, until he sold it to SPX in 2001. HMS provides revenue enhancement and recovery services to public healthcare programs and payors.
Blackbaud Elects Investment Gurus (Market cap: $1.07 billion)
The software maker for non-profits has elected David Golden, 52, and Sarah Nah to its board. Golden is partner and EVP of Revolution and former Vice Chairman of JP Morgan. Nah, also a former Vice Chairman at JP Morgan, serves on the boards of Knoll and Merrimack Pharmaceuticals and is a trustee of the New York Historical Society, NewYork-Presbyterian Hospital, the New York Restoration Project, and Washington and Lee University. She is also a member of the business leadership council of City University of New York and the National Board of the Smithsonian Institution.
Digital River Board Names High-Power CFO (Market cap: $1.04 billion)
The e-commerce website builder for online retailers named financial executive veteran Alfred Castino, 57, to its board. He most recently served as SVP and CFO for Autodesk, and also spent time during his career with PeopleSoft, Sun Microsystems, HP, Bank of America, Deloitte & Touche, and Arthur Andersen.
Isilon Appoints Former CISCO and Openwave Exec (Market cap: $1 billion)
The storage solutions provider appointed Don Listwin, 50, to its board. Listwin is the former CEO of Openwave, a mobile Internet solutions provider, and former EVP at Cisco. He also serves on the boards at Calix, Clustrix, Genologics, Stratos Bioscience, and the National Cancer Institute’s Board of Scientific Advisors. Isilon is a storage management software solutions provider.
ScanSource Director Retires, Depleting Board (Market cap: $738 million)
James Foody, 80, will retire from ScanSource POS and Barcoding’s board of directors in December. ScanSource did not announce plans to replace his seat, diminishing the size of its board to five members. Foody will maintain his honorary role of Chairman Emeritus and continue advising the company.
LogMeIn Swaps One Former CA CEO and Investment Banker for Another (Market cap: $640 million)
Former CEO of CA and investment banker Mark Christenson was named to LogMeIn’s board. Kenneth Cron, former interim CEO of CA, and currently in private equity, resigned.
RealNetworks Board Appoints Mobile Expert (Market cap: $651 million)
RealNetworks has appointed Janice Roberts to its board. Roberts is a Managing Director at Mayfield Fund, a VC firm. Her expertise is in mobility, wireless communications, and consumer industries. Real now has nine board members, including seven independent directors.
Renaissance Learning Separates CEO, Chair (Market cap: $421 million)
The computer-based assessment software company appointed Glenn James, 51, as CEO. James, who brings his experience at UNISYS and Deloitte Consulting, will also serve as a board member. He succeeds Terrance Paul, 62, who will take the helm as Chairman of the Board. Judith Paul, current Chairman, will assume the role of Vice-Chairman.
Smith Micro Software Appoints Mobile Expert with D.C. Experience (Market cap: $353 million)
The mobile and PC software maker has elected James Straight to its board. A 25-year telecommunications veteran, Straight has held senior executive roles for several telecommunications companies, including Verizon Wireless. He also served in the White House Communications Agency under the Reagan, Bush, and Clinton administrations.
Retalix Plays Musical Board Chairs (Market cap: $303 million)
Avi Naor, 62, board member, was named Chairman of the integrated enterprise-wide software solutions company’s board. Eli Gelman requested to step down because of his new responsibilities as Amdocs' new CEO. Naor and Gelman are members of the Alpha Group and joined the board when they acquired a 20 percent share.
Mercury Names Air Force Vet to Board (Market cap: $285 million)
The computer signal and image processing systems and software for embedded markets provider elected retired U.S. Air Force Lieutenant General George Muellner. Muellner was also former division president of the Integrated Defense Business unit at The Boeing Company,VP and GMM of Air Force Systems at Boeing, and president of Phantom Works, Boeing’s advanced research and development unit.
Actuate Names Valley Leader to Board (Market cap: $234 million)
Actuate has elected Raymond Ocampo Jr., 57, CEO of a private investment and consulting company, to its board. Ocampo is an esteemed Silicon Valley leader with extensive enterprise software company and served as SVP and General Counsel and Secretary of Oracle Corporation until his retirement in 1996. Actuate develops Business Intelligence and enterprise performance tools.
International Game Technology Elects Media CEO Sadusky to Board (Market cap: $91 million)
Vincent Sadusky, 44, was elected to IGT’s board. Sadusky is president and CEO of LIN TV. His background includes stints at Telemundo and Ernst & Young. Sadusky also serves on the board of directors for LIN TV Corp., as well as Maximum Service Television, Open Mobile Video Coalition, and JVB Financial.
Other Notable CEO and Executive Appointments
Oracle Appoints Bob Weiler as Head of Industries (Market cap: $124.3 billion)
Even before Charles Phillips left Oracle, Bob Weiler, previously Chairman and CEO of recently -acquired Phase Forward, was put in charge of global business units. Weiler has more than 30 years of technology-industry leadership experience, including his previous tenure as Giga Information Group’s chairman, president and CEO. Earlier in his career, Weiler served as president and CEO of Eastman Software (formerly Wang Software), as well as SVP of worldwide sales and marketing for Lotus Development Corporation, where he was instrumental in expanding the company’s Lotus Notes business.
Activision Blizzard Names Marketing Guru New Publishing CEO (Market cap: $14.1 billion)
In another appointment that highlights the value of B2C marketing talent, Activision Blizzard has named marketing and advertising industry veteran Eric Hirshberg CEO of Publishing. Hirshberg was formerly CEO of Deutsch LA, a full-service integrated marketing and advertising agency with more than $1 billion dollars in billings. He was inducted into the American Advertising Federation’s Hall of Achievement in 2007. Everyone from rock stars to presidential candidates has tapped his creative vision. He has created award-winning campaigns for Sony’s PlayStation 3. Former CEO, Mike Griffin, 53, was promoted to Vice-Chairman.
CSC Retools Public Sector, Makes Exec Changes (Market cap: $7.13 billion)
CSC saw delays and renegotiations in public sector contracts. This resulted in sweeping changes:
Kenneth W. Deutsch, retired U.S. Navy Admiral, was named account executive, Department of Defense (DoD) Cyber, and will continue to serve as VP of the Information Dominance business in the NPS Defense Group. David Zolet was named president of Business Development for the NPS business unit. Zolet formerly served at IBM and Northrup Grumman Corporation. He replaces Mike Gaffney, who is now president of the NPS Civil and Health Services Group.
You can find other CSC management changes, mostly in the public sector, in our blog.
Akamai Technologies Separates Pres, CEO Roles (Market cap: $6.81 billion)
David Kenny, 48, a digital media and advertising executive, was appointed president. He will also sit on the board. He reports to CEO Paul Sagan, 51, who relinquished the presidency. Most recently, Kenny was Managing Partner of VivaKi, and a member of the Management Board of Publicis Groupe SA, the global marketing services holding company and parent company of VivaKi. George Conrades, 71, remains Chairman. The Akamai board also announced the search for an additional independent director, returning the board’s membership to 12.
Western Digital Promotes Financial Executives (Market cap: $5.61 billion)
Hard drive maker Western Digital promoted CFO Tim Leyden, 58, to COO. Leyden served the company for more than 20 years in a variety of worldwide finance, manufacturing, and IT leadership positions. Wolfgang Nickl, 41, has been promoted from VP of Finance to SVP and CFO. CEO, John Coyne, 60, also has operational roots.
Amdocs CEO Retires and COO Takes Over (Market cap: $5.3 billion)
The billing, customer care and order management software maker for telecommunications companies announced Dov Baharav, 59, will retire as president, CEO and Director in the first quarter of 2011. Eli Gelman, 52, Director and Amdocs' former EVP and COO, will succeed him.
Blue Coat Systems Sees C-Suite Shakeup (Market cap: about $1 billion)
Brian Nesmith, 48, stepped down from the CEO position to become Chief Product Officer. The company named Michael Borman, 55, who previously served as CEO of Avocent, as its new leader. Bluecoat focuses on security and performance of applications on networks.
RealNetworks Names Legal Exec as CEO (Market cap: $452 million)
RealNetworks has named Bob Kimball, 46, president and CEO. He was serving as interim president and CEO. Kimball came to Real in 1999 and has served as the senior executive handling legal matters, corporate development, and government affairs. Kimball previously served as a senior attorney and Manager of Business Relations at IBM Global Services. RealNetworks delivers entertainment through mobile service providers.
Echelon Names New Telecom CEO (Market cap: $309 million)
Echelon named Ron Sege, 53, president and CEO. He also joined the board of directors.
He most recently served as president, COO and board member at 3Com Corporation from 2008 through its acquisition by HP. He was previously CEO of Tropos Networks and Ellacoya Networks, both broadband-related companies, and EVP at Lycos. Echelon supplies control networking hardware and software to the smart meetings space.
Jack Henry Appoints Division President (Market cap: $303 million)
The financial services software company has appointed Ted Bilke president of its Symitar division. He has been promoted from another division, where he was a GM. Bilke succeeds Kathy Hooker Burress, who is retiring Dec. 31.
Tier Technologies Appoints New Pres, CEO
Electronic payment solutions company Tier Technologies named Alex P. Hart president and CEO. Hart brings a background in online banking, electronic payment and debit card to the company. He previously served at FleetCor Technologies, Checkfree Corporation Electronic Banking services, Corillian, Microsoft and NationsBank.
Vell Adds Two New Senior Consultants
The Vell team is growing! In the third quarter, Smita Sah and Keerthi Sri joined the firm. Sah will serve as a Senior Consultant while Keerthi will serve as a Senior Business Development Analyst.
Sah is a Strategic Human Resources Management Expert with special emphasis on recruiting. She has more than 10 years growth experience in IT companies. She has a proven track record of building and assimilating large teams of technical, sales and marketing professionals, including VPs, Directors, Project Managers, Technical Architects and Engineers across India, the US, and Japan.
Sri has more than eight years of experience in Business Research. Prior to working for Vell, she served in the Knowledge Management Center (KMC) of Heidrick & Struggles (H&S) in New Delhi, India as Senior Business Development Analyst. She was part of KMC since its inception and handled various functions during her time there. Sri joined KMC as an Information Researcher and was promoted as team leader within six months. Later she was appointed to a senior position in the Business Development team.