Intel CEO Paul Otellini said this week his successor will likely be tapped from within the company when he retires this May.
Speaking at a Sanford C. Bernstein conference Wednesday, Otellini said on-boarding an external candidate would eat up too much of Intel's time, as it would take the new CEO years to fully grasp Intel's culture.
"In this environment, why take the risk and take the time?" Otellini said, according to a report from Bloomberg. "So my sense is that they will stay inside."
That said, Otellini also noted that his successor is not ultimately chosen by him, but by Intel's board of directors. "It’s not up to me, but I think that's the most likely outcome," he said, adding that he feels "very comfortable" with the internal candidates being considered for the CEO role.
Otellini shocked the tech world last month when he announced his plans to retire in May, after eight years at Intel's helm and almost 40 years at the company. When he retires, Otellini will be 62, or three years younger than Intel's mandatory retirement age.
According to an interview Intel Chairman and former CFO Andy Bryant held with Barron's last month, Otellini's retirement in May will come much sooner than the chip maker had hoped. Bryant said he tried to convince Otellini to keep the CEO role for at least another year, but Otellini was adamant about handing off the reins.
"After almost 40 years at Intel, and the Intel CEO job for eight years, which is a really hard job, [Otellini] felt it was time to move to the next generation of leadership," Bryant said in the report. "We do have big issues in front of us, moving to the tablet and phone markets, and he was ready to let the next generation lead those battles."
Intel solution providers also emphasized the importance of Intel's new leader being able to push the chip maker into the mobile market, especially as PC sales continue to slide.
Intel hasn't disclosed which internal candidates are being considered for the CEO role, but COO Brian Krzanich and CFO Stacy Smith are likely in the running.
PUBLISHED DEC. 7, 2012