Big news from AMD as the company announced that Rory Read is stepping down as president and CEO. The board of directors has appointed Dr. Lisa Su as AMD's new president and CEO. Lisa Su quickly climbed the ranks at AMD, she joined the company three years ago to head the business unit and previously had high-ranking jobs at IBM and Freescale.
Rory Read was hired in August 2011 as AMD's CEO and we hear rumors that he was always meant to be a "caretaker" CEO. The press release mentions that Su's appointment is part of a transition plan and that the leadership succession planning has been a joint effort between Rory and the board.
AMD (NYSE: AMD) today announced that its board of directors has appointed Dr. Lisa Su as president and chief executive officer and member of the board of directors, effective immediately. Dr. Su, 44, succeeds Rory Read, 52, who has stepped down as president and chief executive officer, and member of the board of directors, as part of a transition plan. Read will support the transition in an advisory role, remaining with the company through the end of 2014.
“Leadership succession planning has been a joint effort between Rory and the board and we felt that Lisa’s expertise and proven leadership in the global semiconductor industry make this an ideal time for her to lead the company,” said Bruce Claflin, chairman of AMD’s board of directors. “The board looks forward to continuing to work with Lisa and the rest of the senior management team to build on the company’s momentum. I would also like to thank Rory for his many accomplishments and contributions positioning AMD for long-term success by helping to create a strong foundation and clear path to re-establish the company’s growth and profitability.”
Commenting on her appointment, Dr. Su said, “I am deeply honored to have this opportunity to lead AMD during this important time of transformation. Our world-class technology assets combined with the incredible talent and passion of the AMD team provide us with a unique opportunity to shape the future of computing. I look forward to expanding on the strong foundation we have built under Rory’s leadership as we develop industry-leading technologies and products for a diverse set of markets to drive sustainable and profitable growth.”
During the last three years, AMD has made significant progress in financial and operational performance. The company returned to non-GAAP profitability and materially diversified its business. Since 2012, AMD has reduced operating expenditures by approximately 30 percent and maintained cash at near an optimal level of $1 billion. AMD also improved its balance sheet by re-profiling its debt with no significant debt coming due until 2019.
Read stated, “I am grateful to have had the opportunity to lead such a talented team and proud of what we have accomplished during such an important chapter in the company’s history. Together, we have established the right strategy to enable AMD to continue to grow and transform. I am confident that Lisa is the right leader to drive AMD forward.”