Vell Executive Search Update
Read about Fourth Quarter 2010 Technology board and executive moves
In the fourth quarter of 2010, we saw heavy hitters continue to make key leadership decisions to position their companies for the expected tech industry recovery in 2011.
The tech giants HP, EMC, CA, and SAP are putting a greater emphasis on leadership in the cloud, security, mobile and content while online media AOL and Yahoo continue working to woo traditional media execs from TV Land. Meanwhile, strong federal liaison execs are still being recruited and positioned in D.C.
Overall, we are seeing a more global focus among executive leadership hires. Executives more often are from a broader range of nationalities, bringing increasingly important geographic expertise to global companies. This trend is evident in Microsoft’s appointment of a Canadian, an American, and a Brit to lead strategic divisions; eBay’s move to appoint a Frenchman as CFO of PayPal; and key EMEA and Asia appointments by Juniper, McAfee and Quest.
Finally, we saw a fourth quarter focus on brand builders and strategists. HP hired a brand builder from Western Union. EBay appointed a Visa exec with digital marketing roots. And Priceline and NetApp filled important strategy positions as we head strong into the New Year.
In the boardroom, we saw four trend lines that could shape the evolution of tech companies in 2011 and beyond. We outline those, along with interesting, controversial, and surprising hires and appointments as 2010 ended, in the pages ahead.
We hope you find our newsletter of value. And stay tuned to the Vell Executive Search blog. We are adding new entries over the next couple of weeks that support these themes within the management teams of smaller companies and various roles in the larger companies.
All the best,
Vell Executive Search
Stand Out Board Trends
As some tech companies continue to feel the backlash of the recession—and as others continue to defy it—board appointments remain in the spotlight. Fourth quarter appointments indicate a recognition of the opportunities and challenges 2011 has to offer.
In the fourth quarter of 2010, we saw a trend continue toward appointing traditional heavyweight CEOs or financial-focused, grey-haired execs to boards. Prime examples include Apple, Caterpillar and Time Warner. Apple’s financial exec board appointment shows that CEO Steve Jobs doesn’t mess around when hand picking his small, but powerful board. Caterpillar also got serious with the appointment of an IBM financial heavyweight and Time Warner appointed an investment banker specializing in leisure and entertainment.
Mirroring the CEO appointment trend, many of 2010’s most significant fourth quarter board appointments were globally-minded execs with Asia and Europe experience. Some companies even expanded their boards to accommodate this talent. Key examples include Qualcomm naming a Spanish Telecom exec and Dell naming a German-born lead independent director.
Although women have been gaining ground on tech boards, the fourth quarter saw fewer women appointed to the boards of larger tech companies. Cisco’s 46-year-old Laura Ipsen is a major exception.
Finally, we are keeping a close eye on the trend of separating the roles of Chair and CEO. There is no general consensus as to the best practice—the reality is that one size does not fit all. A company could easily separate the roles, yet fail to appoint a strong Chair or CEO, effectively nullifying the intent. What’s more, combining the roles may be necessary to enable a CEO to act decisively. A strong lead independent director could be the right move in certain situations. We also see a few significant appointments with the former CEO becoming Chair. Xerox did this as it transitioned in its new CEO, then gave her the title of Chair. We will keep a close eye on the fall out of decisions to separate or not separate the Chair and CEO roles in the quarters ahead.
Large Cap Board Appointments
Apple’s Board Gains Power
Apple appointed Dr. Ronald D. Sugar, 61, former Chair and CEO of Northrop Grumman, to its board. Sugar has also held executive positions at Litton Industries and was CFO at TRW. He is a director of Chevron, Amgen and Air Lease Corporation, and is a senior advisor to Ares Management. This is a strategic placement indeed. With the death of former IBM CFO (and advisor to billionaire Kirk Kerkorian) Jerry York, 71, Apple needed a strong financial executive to fill York’s shoes and keep up with other influential members of this small, but powerful board. For more details ready my blog entry.
Qualcomm Board Taps Spanish Telecom Veteran
Qualcomm has appointed Dr. Francisco Ros Perán to its Board. Ros Perán most recently served as Secretary of State of the Government of Spain, where he was responsible for telecommunications and the development of the Information Society. Previously, Ros Perán was Managing Director of Qualcomm Spain and CEO of Unisource before spending time at Telefonica. He holds a double PhD—one from MIT in Electrical Engineering and Computer Science.
Big Blue Risk Officer Named to Caterpillar’s Board
Jesse J. Greene, Jr., 64, was elected to Caterpillar’s Board and will serve as a member of the Audit Committee. Greene has worked at IBM for about 30 years. He is currently the firm’s Chief Financial Risk Officer. His background includes experience at Compaq and Kodak.
Nokia Board Member Resigns After New CEO Named
Anssi Vanjoki, 54, leader of Nokia’s Mobile Solutions, EVP, and a member of Nokia’s Group Executive Board, resigned. His departure coincided with the arrival of Stephen Elop, 48, the former Microsoft executive with Canadian roots who took over as Nokia CEO.
Investment Banker Joins Time Warner’s Board
Time Warner appointed Paul Wachter, 54, to its board. Wachter is CEO of Main Street Advisors, an investment advisory services firm. Wachter has been an investment banker since 1982, specializing in leisure and entertainment. A 1981 graduate of Columbia Law School and Wharton, Wachter started his career as an attorney.
Monsanto Board Adds Female Cisco Exec
Laura K. Ipsen, 46, SVP and GM of Connected Energy Industries at Cisco, is the newest member of Monsanto’s Board. Ipsen joined Cisco in 1995. Ipsen is Co-Chair of Cisco’s EcoBoard. Her prior experience includes Hitachi, Acer and PwC.
Xerox Board Appoints Former Goodyear CEO with Imaging Roots
Robert J. Keegan, 63, former Chair and CEO of Goodyear Tire and Rubber, is Xerox’s newest board member. Prior to 2000, Keegan was also President of Kodak’s Consumer Imaging Business.
CSC Names New Audit Committee Member
CSC has appointed Erik Brynjolfsson, 48, to its Board as a member of the Audit Committee. Brynjolfsson is Director of MIT’s Center for Digital Business, the Schussel Family Professor at the MIT Sloan School, Research Associate at the National Bureau of Economic Research, and Chair of the MIT Sloan Management Review. His recent work analyzes how IT drives innovation.
New Chairs & Leads
Accenture Transitions & Splits Chair & CEO with Paris-based CEO
William D. Green, 57, is stepping down as CEO of Accenture, but will remain Chair of the Board. He has served on the Board since 2001, as CEO since 2004, and as Chair since 2006. Prior to 2005 Green served in various capacities, including COO of Client Services, CEO for Communications & High Tech group, and CEO of the Resources group. He joined Accenture in 1977.
Paris-based Frenchman Pierre Nanterme, 51, is now CEO and Board member. The 27-year company veteran was most recently CEO of the Global Financial Services Operating group. He also served as Chief Leadership Officer in charge of the human capital strategy and the global operating model.
Dell Appoints German CEO to Board, Names Lead Independent Director
Dell named German-born Gerard Kleisterlee, 64, president and CEO of Royal Philips Electronics, to its Board. Kleisterlee has been CEO of Royal Phillips since 2001 and has extensive Asia-Pac experience. He joined Philips’ Medical Systems in 1974. He has held roles in the Audio Product Group, Philips Components and Display Components.
Alex Mandl, 66, current non-executive Chair of Gemalto and a Dell board member since 1997, has been named Independent Presiding Director of the Board. He replaces Sam Nunn, 71. Mandl was CEO of Gemplus, principal of ASM Investments, CEO of Teligent, and AT&T’s President & COO. He is also is a board member of Hewitt Associates, Horizon Lines and Visteon Corporation.
Ford Foundation President Joins EA Board
Electronic Arts’ newest Board member is Luis Ubiñas. Ubiñas is president of the Ford Foundation, overseeing more than $10 billion in assets and $500 million in annual giving. He previously served as a Director at McKinsey. Ubiñas also serves on several boards and advisory committees, including the World Bank, the UN Memorial Committee, and President Obama’s Advisory Committee on Trade Policy and Negotiation.
Lexmark Outlines Transition Plans
After 12 years on the job, Lexmark Chair and CEO Paul J. Curlander, 57, plans to retire as CEO. He will assume the role of executive Chair until Spring 2011. Curlander has served in various engineering and management positions at IBM for 17 years and joined the spin-off Lexmark in 1991. Long-term exec Paul Rooke, 52, will take over as CEO. Rooke was most recently EVP and President of the company’s Imaging Solutions Division.
CAD Software Maker PTC Separates CEO and Chair Roles
PTC named James E. Heppelmann, 45, as its new CEO. Heppelmann previously served as President and COO and will maintain the presidency of the company. He succeeds C. Richard Harrison, 54, who stepped down as CEO to serve as Executive Chair. Heppelmann joined PTC in 1998 as an SVP when PTC acquired Windchill Technology, a company he founded. His functional roots are in technology and marketing.
DNS Provider Neustar Names New CEO and Chair
Neustar named James Cullen, 67, as its Chair is a long time board member and lead director. Cullen served as President and COO of Bell Atlantic (now Verizon). He is currently a Director of Prudential Financial and Johnson & Johnson, as well as non-executive Chair of Agilent. Founder Jeff Ganek, 57 was initially expected to remain Chair, but plans changed during the fourth quarter.
Lisa Hook, 52, joined the Neustar Board and was named CEO. She had served as President and COO of the company since 2008. Hook was previously CEO of VoIP Service provider Sunrocket, and also spent time as an executive at AOL in the Broadband and Mobile businesses. Hook has advised Time Warner and has a legal background with Viacom. She also serves on the Board of Reed Elsevier.
Live Nation’s Names Interim Chair After Board Struggle
Live Nation named Dr. John C. Malone, 69, as its Interim Chair. Barry Diller, the 68-year-old media mogul who claimed credit for the merger of Live Nation and Ticketmaster, resigned as Chair after a boardroom power struggle over strategy following a disastrous concert summer season. Diller is also CEO of IAC/Interactive Corp.
Malone is Chair of Liberty Media and Liberty Global. He was previously the Chair and CEO of Tele-Communications until it merged with AT&T in 1999. He currently serves on the Board of Directors for the CATO Institute, Expedia, Discovery Communications, and SIRIUS XM.
Take Two Interactive Chair Becomes CEO
Strauss Zelnick, 53, a partner in ZelnickMedia since 2001, is Take Two Interactive’s new CEO. Zelnick has served as the video game maker’s Chair since March 2007. He is also Chair of Columbia Music Entertainment of Japan, OTX, and ITN Networks, and serves on the Boards of Blockbuster and Naylor. Previously, Zelnick was CEO of the $4.7 billion music giant BMG and CEO of Crystal Dynamics, a leading producer and distributor of interactive game software. He was also President and COO of Fox. CEO Ben Feder, 46, left the company to make room for shareholder activist Carl Icahn’s handpicked replacement.
Scientific Games Combines Chair, CEO Roles
Lorne Weil, 64, Scientific Games’ Chair, has stepped into the CEO role once again. Weil previously held the position from 1992 to 2008. During his prior tenure, the company’s revenue grew from less than $50 million to over $1 billion. Weil replaces Michael R. Chambrello, 52, who will lead the company’s expansion into Asia.
Other Board Appointments
See the Vell Blog for other Board Appointments
Large Cap Executive Moves
Microsoft Promotes Presidential Trio in Key Divisions
Microsoft promoted three of its veteran executives—a Canadian, an American and a Brit—to serve as Presidents of key engineering and marketing divisions.
The promotions come at the heels of the departures of both Robbie Bach, 48, and J. Allard, 51, in November. Bach and Allard were the business and technology heads of the all-important entertainment and mobile divisions. Twenty-year Microsoft veteran Andy Lees, a 45-year-old Brit, will now take the reins of the mobile division. Canadian Don Mattrick, 46, will head the entertainment division. Mattrick joined Microsoft in 2007 after serving as a president at Electronic Arts.
In the wake of 54-year-old Chief Software Architect Ray Ozzie’s departure, 18-year Microsoft veteran Kurt DelBene, 50, was named President of the Microsoft Office Division. The American executive most recently led the highly successful Microsoft Online Services business. His roots include consulting with McKinsey and developing software for AT&T Bell Laboratories.
HP Shake Up Continues in Branding, Cloud
On the last day of September, Leo Apotheker, 57 and Ray Lane, 63 were appointed as CEO and non-executive Chair, respectively. Beyond those headline-making moves, HP also made some quieter, yet important placements.
Gail Galuppo, a 46-year-old brand builder, joined HP as SVP of Worldwide Strategy and Marketing for the $5.1 billion Imaging and Printing Group. She was formerly EVP & CMO at Western Union. She replaces Ron Coughlin, who is now SVP of HP’s LaserJet and Enterprise Solutions.
Meanwhile, category-defining cloud storage CEO David Scott has returned home to HP’s Storage division. Scott, 49, spent the past decade as CEO of 3PAR, a utility storage company HP acquired in 2010. Scott will serve as SVP and GM of HP’s StorageWorks and report to Dave Donatelli, EVP, Enterprise Servers, Storage and Networking.
Finally, Marcela Perez de Alonso, 56, is retiring as EVP of HR, citing personal reasons. She will remain at her post until a successor is named. She earned recognition as “2009 Human Capital Leader of the Year” by the Society of Human Resource Management and was featured on the cover of HR Executive magazine for architecting a breakthrough workforce planning model unmatched in the HR industry. Could her departure signify a change in philosophy from the old guard?
Application Software Shuffles
SAP ’s HQ Changes & VP Reshuffling
Hubertus Kuelps was named head of SAP Global Communications, reporting to both SAP Co-CEOs. Kuelps has extensive global experience in both U.S. and global markets. In the U.S., he served at Allianz of America and Fireman’s Fund Insurance. He also served as COO of Allianz Life in Malaysia. Kuelps comes into his new role at an interesting time, considering California courts just slapped SAP with a $1.3 billion fine for infringing on Oracle’s database IP.
Meanwhile, Roger Bellis, 56, was named SVP, Global Talent, Leadership, and Organizational Development. Combining all three roles is an interesting trend in the technology industry. The question is, does it push functional competencies down the organization or does it drive stronger coordination? Bellis will report to Dr. Angelika Dammann, the member of the SAP Executive Board responsible for Human Resources. Prior to SAP, Bellis ran a HR consultancy, and has held HR roles at Rexam, GBR, Unilever, Scottish Power and Barclays.
On the go-to-market side, Doug Merritt, EVP and GM of the company’s Sales for the Business Objects division, is leaving, alongside global field services head Bernd-Michael Rumpf.
Bob Stutz, EVP and Director, Mobile Business, and Singh Mecker, SVP, Global Ecosystem and Partner Group (GEPG). Raj Nathan, 55, EVP and CMO, Sybase will serve as interim head of the Mobile Applications Group.
Rob Enselin, President, North America is now head of sales, and Eric Duffault is heading up the partners organization. Jose Duarte will head services, Sanjay Poonen, SVP and GM, Business Objects, will lead software sales.
Bob Courteau and Franck Cohen will step into the regional field leadership roles in North America and EMEA, respectively.
Adobe’s New Government Exec
Adobe is following other tech giants in the trend of appointing powerful government relations executives. Adobe named Jace Johnson as VP of Government Affairs and Public Policy. He previously served as the Chief of Staff to U.S. Sen. Hatch of Utah. He also served in the U.S. Department of State, on the National Security Council in the Clinton White House, and on the staff of Secretary of State Warren. Prior experience includes Corvis and VISA Interactive.
Veteran Autodesk Sales & Services EVP Exits
Ken Bado, 55, EVP of Sales & Services, is leaving the company to pursue other opportunities.
Intuit Names Female Exec, Government Relations Guru
Intuit named CeCe Morken, 53, VP and GM of Intuit Financial Services. She succeeds Sasan Goodarzi, 42, who accepted a position as CEO of clean energy firm Nexant.
Online Media New Execs
eBay Appoints two Traditionally Trained Execs to Financial and Marketing Roles
Patrick Dupuis was named CFO of PayPal. He previously served as CFO at call center outsourcing provider Sitel and nonprofit BJC Healthcare. Dupuis spent 20 years at GE, including stints as VP and CFO for GE Healthcare, and VP/GM of GE Capital International Services, (now off-shoring BPO Genpact). He is a graduate of the Ecole de Management in Lyon, France.
Global consumer and digital marketing veteran Richelle Parham joins eBay as CMO for North America. Parham comes to eBay from Visa, where she ran Global Marketing Innovation and Initiatives and Global Marketing Services. She also has 13 years at marketing agency Digitas, including a role as SVP & GM in Chicago.
Yahoo Revamps North American Leadership
After laying off 600 workers, shutting down services and looking to sell others, the struggling Internet company is bringing in two strong execs to North America operations.
Levinsohn, 47, joins Yahoo as EVP, Americas, reporting to CEO Carol Bartz, 61. He is the founder of Fuse Capital, a private equity firm focused on building digital media and communications companies. He was also President of Fox Interactive Media, and held senior roles with AltaVista, CBS Sportsline and HBO.
Meanwhile, Wayne Powers, the President of Time Inc. Media group, was named SVP of Advertising Sales for North America. He reports to Levinsohn. Powers will be based in Yahoo!’s New York office. He has strong relationships with advertisers and has held several senior level sales executive roles with Nestle and Dole Packaged Foods.
Priceline.com Passes Worldwide Strategy Torch
At only 44 years of age, Robert J. Mylod Jr. is retiring as Priceline’s Vice Chair and Head of Worldwide Strategy and Planning, and will assist CEO Jeffrey H. Boyd on special projects for a year. Mylod joined Priceline in 1999 and was CFO from 2000 to 2009. Prior to 2000, he was CFO of Webhouse Club.
EVP Glenn D. Fogel, 48, is adding Mylod’s strategy responsibilities to his current ones in, Corporate Development. Fogel joined Priceline in 2000. He is a member of the Board of Directors of subsidiaries Booking.com, Agoda.com and TravelJigsaw. Prior to 2000, he worked at Morgan Stanley.
Finally, Priceline subsidiary Agoda has promoted a CEO from within. Robert Rosenstein, 43, will head the Asia-based online hotel reservation service. Most recently, he was President and COO of Agoda. He co-founded the company with Michael Kenny in 1997. Kenny left the company.
AOL Makes Sweeping Exec Changes
AOL is reorganizing its executive ranks, perhaps getting ready for a new run in 2011.
These new appointments follow a number of changes in the third quarter. AOL is busy staffing up with media execs and journalists.
Curtis Brown has come aboard as SVP of Engineering of AOL Media to oversee the Internet giant’s broad-scale media platforms and the technology roadmap. He was most recently CTO at Kaplan Test Prep. He previously served as CTO at CTB/McGraw-Hill, The Princeton Review, Oxygen Media and Skymall.
Erynn Petersen has joined AOL as VP of Developer Evangelism, supporting the developer community and AOL’s open source strategy. She comes to AOL from Microsoft, where she was Partner Manager of Yahoo! Peterson is also co-founder and CEO of Sonition, an auction automation technology firm. She started her career in product management and business development at Amazon.
Jonathan Dube joins AOL as SVP and GM of its News & Information division. He reports to David Eun, President of AOL Media & Studios. Dube was formerly VP of ABCNews.com. He previously served as the senior digital media executive for Canadian Broadcasting Corporation’s news division and as Managing Producer at MSNBC.com.
Kathy Andreasen has joined AOL as Chief People Officer. She also brings real estate and facilities management experience to the table. She was most recently SVP and CHRO at Orchard Brands, and head of HR at BillMeLater and Orbitz Worldwide, Cendant Corporation and NBCi.
Lauren Hurvitz joins AOL as Head of Corporate Communications. Hurvitz spent three years as EVP of Corporate Communications & Public Affairs at MTV Networks, and nine years at Robinson Lerer & Montgomery.
Finally, Mike DeLuca joins AOL as Head of Sales for AOL Local. In conjunction with AOL Advertising, DeLuca will build local sales teams for Patch, City’s Best, MapQuest, and Wow! Deal of the Day properties. He previously managed sales teams at Yodle, and at Yahoo!’s HotJobs division.
GSI Commerce Makes Exec Fashion Statement (Market Cap: $1.63 billion)
Web developer GSI Commerce’s fashion subsidiary Rue La La has named Ira Melnitsky as Chief Merchandising Officer. Melnitsky comes to Rue La La from Tumi and Ferragamo. The company also appointed 10-year company veteran Steve Davis, 39, as President.
Meanwhile, GSI added the following executives to the new Chief Sales Officer and VP, Corporate Development and CTO, it announced in the third quarter:
- Peter Ockerbloom joined the company as EVP of Sales. His past experience includes The Boston Globe, Boston.com and e-Dialog.
- Reuben Hendell joined as CEO of the Global Digital Agency Business. Since 2004, Hendell served as CEO of MRM Worldwide, a top five digital marketing agency, and also spent time at Digitas
New Leaders in the Cloud
EMC Focuses on Clouds, Content Management and Solutions
Mark Lewis, 47, is rising up the EMC ranks once again. He has been named Chief Strategy Officer in EMC’s Information Infrastructure Products (IIP) Business. His job: to accelerate customer’s journeys into private clouds. He reports to Pat Gelsinger, 48. Lewis joined EMC in 2002 as CTO and head of development. Prior to EMC, he was VP and GM of HP/Compaq’s Enterprise Storage group.
Rick Devenuti, 52, has been appointed President of EMC’s Information Intelligence Group (formerly called Content Management & Archiving). The group includes companies such as Documentum, SourceOne, and Captiva. Devenuti joined EMC in 2008 following a successful 19-year career at Microsoft. Most recently he served as SVP of Microsoft Services and IT, and CIO.
27-year Intel veteran Prasad L. Rampalli has joined EMC as SVP of Global Solutions. He reports to EVP Frank Hauck, 50. Rampalli is now leading Global Solutions Centers, Global Integration and Proof of Concept teams, as well as the company’s solutions practices. His prior exec roles at Intel included Architecture, Manufacturing, IT and Platform BU.
NetApp Names New Strategy and Business Development Head
In yet another “strategy” title in the high-tech industry, NetApp has named Vic Mahadevan Chief Strategy Officer. In his new position, he is tasked with leading the company’s business strategy and identifying opportunities to fuel future growth, including acquisitions, strategic alliances and partnerships. Mahadevan filled a similar role at chipmaker LSI. He was also CEO at a green storage provider Deeya Energy, and held senior roles at BMC Software, Compaq, Ivita, and Maxxan Systems.
CA Woos Former VeriSign Exec
CA has wooed a VeriSign exec to its ranks. The company appointed Michael Denning as GM of its security business, where he will focus on Identity and Access Management (IAM). Denning will report to David Dobson, EVP and Group Executive of the Customer Solutions Group. Denning spent the past 11 years at VeriSign as VP of Security Services. He replaces Dave Hansen, who is moving to manage the enterprise IT management portfolio.
Meanwhile, CA named Mark Frost GM of its IT Management Software-as-a-Service (SaaS) Customer Solutions Unit (CSU), reporting to Chris O’Malley, GM of the Growth Markets CSU. Frost previously served as EVP and GM of MarketTools, an SaaS for enterprise feedback management (EFM) and market research. He had also served as COO at Saba, GM of HCM for PeopleSoft, and held executive roles at Documentum, NeoVista, EDS and GE during his 20-plus career.
Juniper Networks Makes EMEA, Marketing Moves
Juniper named Sean Dolan SVP of EMEA. He reports to John Morris, 49, EVP of Worldwide Sales. Dolan’s prior executive roles include President of Asia Pacific for Alcatel Lucent, and significant roles at EDS, Wang Laboratories and Ernst & Young.
The Cisco-competitor named David Shane VP of Corporate Communications, reporting to Lauren Flaherty, 52, EVP and CMO. Shane resigned his position as VP of Global Corporate Communications at HP after the August scandals around former President and CEO Mark Hurd. Shane has also had senior agency experience, including Weber Shandwick, LA International Creative Management (ICM), Comcast and CBS.
McAfee Makes Quick Transition in EMEA Role
Gert-Jan Schenk, 43, was named President of McAfee’s EMEA region, reporting to Michael DeCesare, EVP of Worldwide Sales. He previously served as SVP of EMEA for Juniper and as VP of Channels for Unisphere Networks. (Juniper acquired Unisphere in 2002). Schenk’s other EMEA roles included Redback Networks and Madge Networks. He replaces David Quantrell, who joined McAfee in 2009 from HP and will stay to transition.
IT Management Software Maker Quest Names Go-To-Market Execs
After making two appointments late in the third quarter of 2010 in the EMEA and Worldwide Sales & Alliances roles, Quest has turned its attention to Asia. Quest named Joe Signorelli Managing Director for Japan. Signorelli was most recently VP for APJ Sales for F5 and has held Asia Pac roles for both Symantec and EMC.
Other CEO Placements
See the Vell Blog for other CEO Placements.