Tech Data's Raymund: CEO Search Progressing

Tech Data’s first-quarter earnings call on Tuesday could be the last for Steve Raymund as CEO. But the one man who would know best--Raymund--can’t even say for sure. The venerable distribution executive announced in late January that he would resign as Tech Data CEO once a successor was found after a four to six-month search. Raymund gave an update on the CEO search in an interview with Distribution Editor Scott Campbell.

CRN: It’s been four months since you announced you would step down as CEO but retain the chairman’s role. Was Tuesday’s earnings call your last as CEO?

RAYMUND: The four to six months [CEO search estimate] isn’t far off the mark, but probably we’ll be on the high side of that--maybe even creep over that. We’re making good progress. We have a strong slate of candidates, and we’ve begun to hone it down a little. Let’s see, the next [earnings call] will be in August. I don’t know. My guess is I would participate even if I have announced a successor.

CRN: Would you delay hiring a new CEO if Tech Data’s operations aren’t running as you want them to, particularly as the Europe, Middle East and Africa [EMEA] business continues to rebound?

RAYMUND: For a CEO to be successful, he or she has to be empowered to act in making changes in the corporation and carrying the business forward. My job as chairman is to act in the best interest of the shareholders and probably to help on the formulation and counsel of strategy development. But we need to be clear that CEOs can’t be encumbered by a founder/chairman that is looking over their shoulders and second-guessing and interfering. My attitude is that I will provide as much help as I can and be available to the CEO in any way.

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CRN: You’ve stated that you plan to be a hands-on chairman. How do you strike a balance?

RAYMUND: I still have a lot invested emotionally and financially, in this company. I feel a lot of responsibility to employees and shareholders to make sure the company continues to grow and develop. I’ll try to be helpful to the team in any way they want me to. But I am fearful so as not to become a divisive structure or a distraction.

CRN: What are the key abilities you’re seeking in a new CEO?

RAYMUND: Well, the ideal candidate will have experience in global IT distribution. Starting from that ideal statement at one end of the extreme, you make compromises depending on an individual’s strengths in one area and weaknesses in another. We are high-volume, low-margin, high-transaction, global and complex. All those things would be helpful. We try to be fairly open-minded, and we’re looking at people with a variety of different backgrounds. CRN: Over the years, you’ve talked a lot about the pharmaceutical distribution industry and how its model served as a forerunner for IT distribution. Would that play into account when looking at candidates?

RAYMUND: Looking at the pharmaceutical industry, I can tell you we haven’t excluded it when looking at people. But that’s really all I can say. We have looked at other distribution markets, global [companies], electronics companies, a variety of places.

CRN: Is it important for the new CEO to have a solid understanding of solution providers, or is it more important to know the vendors and the logistics of Tech Data?

RAYMUND: It’s important to find someone who is passionate about serving customers in the best way possible. Solution providers have specific needs relative to the technology of their customer sets. We need to ID what those are and endeavor what those are. A good CEO can zero in on those key performance indicators and figure out what is needed.

CRN: With some free time coming up, do you anticipate going out and meeting with more solution provider customers? It’s been a while since you have attended a TechSelect show. [Editor’s Note: Raymund is tentatively scheduled to attend the fall TechSelect show in Chicago.]

RAYMUND: We’ll have to see and sort out the various roles and responsibilities going forward. My notion about my own activity is to coordinate with the needs of the CEO. Where I can be helpful, that’s where I’ll go. After 25 years in the businesss, I have built up a lot of contacts and relationships. We absolutely want to make full use of that network. If that means attending this program or that conference to represent the company, great, I’ll be happy to do that.

CRN: Have you started to wind down your active role as CEO? For example, do you delegate more power now than you did a couple of years ago?

RAYMUND: Overall, we’ve tried to delegate more responsibility to the functional and regional leaders. Nestor [Cano] and Ken [Lamneck] in EMEA and the Americas, respectively, are still relatively empowered to drive change with their businesses. It’s the same thing with the other functional executives, including IT and finance. I’ll work closely with the leadership team over time, as we all have been working with one another for a number of years. I trust our team. I admire all their skills and capabilities, which makes it comfortable. I defer to their judgment, but I still put in plenty of hours at Tech Data.