Bloomberg News

EMC CEO Having Too Much Fun to Retire, With Deals on Horizon

February 14, 2012

(Updates share price in final paragraph.)

Feb. 8 (Bloomberg) -- EMC Corp. Chief Executive Officer Joe Tucci’s decision last month to delay retirement by at least a year gives him more time to pursue acquisitions and takes pressure off the company, his main deputy said.

“He’s just having a good time, he’s healthy, the business is going well,” Pat Gelsinger, chief operating officer at the world’s biggest maker of storage computers, said in an interview in London. “We can manage the transitions over time,” he said. By delaying the departure, Tucci “gives us more options for leadership, for acquisitions.”

EMC will continue to make acquisitions in security, cloud technology and other additions to its business units this year, Gelsinger, 50, said. While Tucci, 64, was set to retire at the end of the year, EMC issued a regulatory filing on Jan. 24 that said he can stay on until at least Dec. 31, 2013.

EMC’s spending on acquisitions fell last year as the company worked to integrate some of its largest purchases ever, including the $2.25 billion deal for Isilon Systems Inc. Even with the usual hiccups, such as differing corporate cultures, the Isilon integration is ahead of schedule and the company will hit its target of $1 billion in revenue from the deal by the end of the year, Gelsinger said.

Isilon makes storage systems that can be quickly added to customers’ networks to increase space for data and video.

Putting off Tucci’s retirement takes pressure off the company to find a replacement, said Gelsinger, who is in the running to replace him. Gelsinger said he’s not disappointed that the decision on his promotion will be delayed.

“Quite the contrary,” he said. “At the end of the day the board says there’s no reason, the leadership team says, ‘Hey, hang around,’ and Joe says, ‘I’m energized.’”

A management change would also be distracting at the moment, Gelsinger said.

EMC shares rose less than 1 percent to $26.33 at the close in New York. The Hopkinton, Massachusetts-based company has climbed 22 percent this year.

--With assistance by Dina Bass in Seattle. Editors: Robert Valpuesta, Simon Thiel, Nick Turner

To contact the reporter on this story: Amy Thomson in London at athomson6@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus