Wednesday, January 25, 2012

EMC chief Tucci says he won't step down this year

By Galen Moore, Boston Business Journal

With EMC Corp. setting new earnings records each quarter, chief executive Joe Tucci has abandoned a plan to retire in 2012, he disclosed Tuesday in an earnings call.

According to a transcript of the call, Tucci told investors and analysts during the call that the EMC board of directors had asked him to stay on into 2013.

“They, to a person, have also been actively encouraging me to rethink my transition plans,” Tucci said of the board. “After much soul-searching, I have agreed to extend my role as chairman and CEO into 2013. From a personal perspective, I have never been more energized and excited by what this great company can accomplish.”

EMC on Tuesday posted record earnings for the fourth quarter and fiscal 2011. The earnings report, released early Tuesday morning, sent the Hopkinton data storage company’s stock up nearly 4 percent in pre-market trading. Shares closed the day up 7.25 percent, at $25.20.

Tucci said during the call that he is still working on a succession plan that involves promoting from within. Chief Operating Officer Pat Gelsinger has been named as a likely successor. Tucci announced his plans to retire in 2012 back in June 2011, when he also revealed that EMC would be open to a potential acquisition, if the right buyer was found.

“The board and I fully expect that my successor will come from within the existing, talented and experienced ranks of the EMC management team,” Tucci said. “I have already started to increase the responsibilities of my senior leadership team, and when the time is right, my successor will be named.”

In October 2011, Gelsinger said that EMC would look to fill gaps with a combination of in-house development and acquisitions, particularly in the areas of security, management tools and analytics as it advances its intersecting cloud and big data strategies.