A "development council" composed of several executives will replace Cisco Systems Inc CEO heir-apparent Charles Giancarlo, who has resigned.
Cisco chairman and chief executive John Chambers announced the appointment of the group of executives to oversee acquisitions and other business deals on Thursday after he confirmed Giancarlo, his chief development officer, was leaving.
Giancarlo, whose last day is Dec. 31, plans to join Silicon Valley investment firm Silver Lake as a managing director.
Chambers said in a conference call he and Giancarlo held with reporters that Cisco is shifting from a "command and control" organization to a network of task forces and other teams.
Such a structure is rare in the tech industry, where heroic and charismatic executives often cultivate loyal followings. But "management by committee" approaches have become more common in the legal and financial industries in the last decade.
Chambers said he had no intention of naming another individual to be chief development officer and he might appoint multi-person councils to lead other divisions of the company if the development council works well.
WORK TOGETHER
"I believe this type of structure will be the future, given the complexities and ... market adjacencies we're going to move into," Chambers said. "The future of our company will be about how groups work together architecturally."
Giancarlo's resignation was a rare loss for Cisco, which makes the switches, routers and other gear that enable people to use the Internet. It is the second-most valuable Silicon Valley company after Google Inc.
Cisco is often ranked among the top companies to work for nationwide, and it's known for high morale and low turnover, at least by Silicon Valley standards. In February, it also lost Mike Volpi, senior vice president and general manager in charge of the routing and service provider technology group.
The entrepreneurial Volpi, 41, said his decision to leave was influenced by a desire to build a startup "where I have my signature, my DNA, within it."
Giancarlo joined Cisco 14 years ago when it bought Ethernet switch maker Kalpana. He started Cisco's business development organization and spearheaded its aggressive acquisition strategy, even in the lean years following the dot-com crash of 2000.
During the conference call, Chambers and Giancarlo were affable and nostalgic about their long working relationship -- but they never minced words: Chambers said he has little intention of stepping down in the near future; he emphasized that he would remain CEO for at least three years, more likely five.
BIOLOGICAL CLOCK
Meanwhile, Giancarlo alluded to his ambitions to be at the helm of a company, and he was frank about the shrewd calculations he made about his career after turning 50 this year.
"I went home one day and talked to my wife and said, `Honey, I now know what you mean by a biological clock,'" Giancarlo said. "I feel young, but you do the math: I don't know what my decision process will be in five years, but I know what it is today."
Shares of Cisco closed on Thursday at US$28.28. After Giancarlo's resignation announcement, which came after the end of the regular trading day, they gained 9 cents in extended trading.
Menlo Park-based Silver Lake is a private-equity firm that invests in technology companies. Giancarlo, who will begin there Jan. 2, will work at the most senior levels in its portfolio companies, he said.
North Korea tested nuclear-capable rocket launchers, state media reported yesterday, a day after Seoul detected the launch of about 10 ballistic missiles. The test comes after South Korean and US forces launched their springtime military drills, due to run until Thursday. North Korean leader Kim Jong-un on Saturday oversaw the testing of the multiple rocket launcher system (MRLS), the Korean Central News Agency (KCNA) said. The test involved 12 600mm-caliber ultra-precision multiple rocket launchers and two artillery companies, it said. Kim said the drill gave Pyongyang’s enemies, within the 420km striking range, a sense of “uneasiness” and “a deep understanding
North Korea yesterday fired about 10 ballistic missiles to the sea toward Japan, the South Korean Joint Chiefs of Staff (JCS) said, days after Pyongyang warned of “terrible consequences” over ongoing South Korea-US military drills. Pyongyang recently dashed hopes of a diplomatic thaw with Seoul, Washington’s security ally, describing its latest peace efforts as a “clumsy, deceptive farce.” Seoul’s military detected “around 10 ballistic missiles launched from the Sunan area in North Korea toward the East Sea [Sea of Japan] at around 1:20pm,” JCS said in a statement, referring to South Korea’s name for the body of water. The missiles
RECOGNITION: Former Fijian prime minister Mahendra Chaudhry said that Taiwan’s New Southbound Policy serves as a stabilizing force in the Indo-Pacific region Taiwan can lead the unification of the Chinese people, Nobel Peace Prize laureate and former Polish president Lech Walesa said in Taipei yesterday, adding that as the world order is changing, peaceful discussion would find good solutions, and that the use of force and coercion would always fail. Walesa made the remarks during his keynote address at a luncheon of the Yushan Forum in Taipei, titled “Indo-Pacific Partnership Prospects: Taiwan’s Values, Technology and Resilience,” organized by the Taiwan-Asia Exchange Foundation with the Ministry of Foreign Affairs. Walesa said that he had been at the forefront of a big peaceful revolution and “if
‘UNWAVERING FRIENDSHIP’: A representative of a Japanese group that co-organized a memorial, said he hopes Japanese never forget Taiwan’s kindness President William Lai (賴清德) yesterday marked the 15th anniversary of the Tohoku earthquake and tsunami, urging continued cooperation between Taiwan and Japan on disaster prevention and humanitarian assistance. Lai wrote on social media that Taiwan and Japan have always helped each other in the aftermath of major disasters. The magnitude 9 earthquake struck northeastern Japan on March 11, 2011, triggering a massive tsunami that claimed more than 19,000 lives, according to data from Japanese authorities. Following the disaster, Taiwan donated more than US$240 million in aid, making it one of the largest contributors of financial assistance to Japan. In addition to cash donations and
RSS