This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Intel CEO Otellini to Retire in May (Update 1)

Stocks in this article: INTC

Additional information on Paul Otellini and the company's share price has been added to this story.

NEW YORK ( TheStreet) -- Intel (INTC) CEO Paul Otellini will retire in May, the chip giant has announced.

The Intel chief, who has led the No.1 chip maker since 2005, has decided to retire at the company's annual shareholders' meeting next year.

"I've been privileged to lead one of the world's greatest companies," Otellini said, in a statement released by the company. "After almost four decades with the company and eight years as CEO, it's time to move on and transfer Intel's helm to a new generation of leadership."

Intel's board will conduct the process to choose Otellini's successor and will consider internal and external candidates, according to the company statement.

During Otellini's tenure as CEO, Intel has generated cash from operations of $107 billion and made $23.5 billion in dividend payments. The Santa Clara, Calif.-based firm has also increased its quarterly dividend by 181% from 8 cents to 22.5 cents.

The company's annual revenue has climbed from $38.8 billion to $54 billion on the 62-year old Otellini's watch, while annual earnings grew from $1.40 a share to $2.39 a share.

Otellini, who took over from Craig Barrett as Intel CEO in May 2005, is credited with guiding the company through one of the most turbulent periods in U.S. economic history. He also won plaudits for dragging Intel back to its technology roots while bolstering its reputation for innovation.

In the years prior to Otellini's appointment as CEO, Intel had diversified into new areas such as telecom components, a strategy which left the firm searching for direction and also opened the door for arch-rival AMD (AMD).

Otellini, however, refocused Intel's efforts on its core x86 technology, and has also overseen the company's move into 32-nanometer and 22-namometer technologies, as well as Ultrabooks.

In recent years, though, the company has faced increasingly stiff competition from design rival ARM (ARMH) and graphics chip maker Nvidia (NVDA).

Shares of Intel, which cited weak demand in its third-quarter results last month, were down 1.49% at $19.89 in early Monday trading.

--Written by James Rogers in New York.

>To submit a news tip, send an email to:

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs