Symantec Shares Shrug Off CEO Transition

Despite the risks of changing CEOs at a time of massive economic upheaval, news of Symantec (SYMC Quote) Chief Executive John Thompson's retirement barely put a dent in the company's share price Tuesday.

Late Monday, Symantec announced that Thompson will step down in April, ending a decade as the security software giant's CEO. Enrique Salem, Symantec's chief operating officer, will assume the reins when Thompson retires.

Symantec shares slipped just 6 cents, or less than 1%, to $12.10 in Tuesday trading.

Salem's appointment as CEO could represent a turning point for the firm, according to Jefferies & Company. "Our experience with Mr. Salem indicates that he is likely to bring significant energy and a keen focus on cost reduction and margin improvement," wrote Jefferies analyst Katherine Egbert, in a note released Tuesday.

Egbert maintained her buy rating on Symantec shares, explaining that security is a relatively safe area of investment in turbulent economic times.

Salem did not discuss any of his specific plans for Symantec during a conference call Monday, although he earned a reputation for astute management in his previous role as CEO of email security specialist Brightmail.

The 43-year old is widely credited for reviving Brightmail's fortunes after the dot-com bubble burst, helping pave the way for its eventual $370 million acquisition by Symantec.

In an interview, Thompson told TheStreet.com that Symantec has been working on its CEO succession plan for the last two years, with Salem emerging as the best candidate for the job. "What's needed for our company is to transition the leadership to someone who can lead for the next decade," he said.