One day after Intel said it ended its fourth quarter on an up note, the Santa Clara, Calif.-based chip making giant announced 27-year Intel veteran Paul Otellini would become its president and COO. The company has not had a COO since 1998.
In addition to running the day-to-day operations, Otellini finally makes Intel a two-man executive job as he joins CEO Craig Barrett. Otellini will be responsible for overseeing Intel’s internal operations, focusing on the development and delivery of new products and technologies, and making the company efficient and productive. Barrett will continue to be lead the corporate strategy and long-range planning.
Otellini is expected to show his worth relatively soon as Intel said it would cut capital spending for 2002.
“As Intel’s silicon products span beyond PCs and servers to communications, the job of keeping Intel at the competitive forefront with customers, the industry and government, and in internal operations has grown,” says Barrett. “The breadth and depth of Paul’s experience certainly qualify him to take responsibility for Intel’s internal operational excellence. Paul understands the dynamics of Intel’s business, industry and company culture, and has the skills to help execute on our plans and programs as we move forward.”
Since 1998, Otellini served as executive vice president and general manager of the Intel Architecture Group, responsible for the company’s $21 billion microprocessor and chipset businesses. He served as executive vice president of Sales and Marketing from 1992 to 1998.
Since joining Intel in 1974, Otellini has held a number of other positions, including general manager of the company’s Peripheral Components Operation and of the Folsom Microcomputer Division.
Putting Otellini in the COO spot could eventually pay off if Barrett ever retires or moves on. Though no one at the company would comment, Intel’s board usually looks to its second-highest officer to replace a departed COO as was the case when Barrett replaced Andy Grove in 1998.
