It is an inherent part of the CEO role that you get credit for the good times and blame for thebad. Take Cisco’s layoffs, for example—Chambers is equally responsible for those as he is forthe company’s growth, Renaud says. “I know how much the layoffs in 2001 emotionallyimpacted John, as I suspect the layoffs in 2009 did as well,” he says. “This can’t be easy forhim, but it is part of the cycle of every business.”
Chambers spent many years in sales during the early part of his career. It’s possible thatbackground may be part of what has helped him endure. “Great salesmen run on a specialkind of real-world optimism. You know—head in the clouds, feet on the ground,” says JohnWaters, editor-at-large for Application Development Trends and author of John Chambers andthe Cisco Way. “Add an almost devout focus on the customer, and you’ve got a combo ofpersonal traits that surely helped to keep him in the big chair.”
‘I expect some investors are wondering’
Chambers’ two-decade tenure is relatively unusual in the technology industry, but it’s far fromunprecedented. Of those chief executives active in the role today, Activision Blizzard’s RobertKotick, Microchip Technology’s Steve Sanghi, and Nvidia’s Jen-Hsun Huang exceed Chambers’tenure. Concur’s Steven Singh and Amazon’s Jeff Bezos aren’t far behind.
“IT CEOs typically call the shots on their career paths until they lose the faith of their customersor shareholders,” King says. That usually happens in one of three ways: Either the CEO missesa key evolutionary shift in the industry, wastes money on unsuccessful products, or fails todeliver the returns desired by large institutional investors, he says.
In Chambers’ case, the last reason is the most pressing. “Much like Microsoft under [Steve]Ballmer, Cisco shares have for the past decade been mired in a fairly narrow trading range—between $15 and $30—and the stock has mostly failed to catch fire in major marketadvances, including the one currently under way,” King says. “Since the company offers onlyrelatively small dividends—currently $0.19 per share, compared to $0.28 per share forMicrosoft and $1.10 per share for IBM—I expect some Cisco investors are wondering how thecompany might fare under a different leader.”
Cisco has plenty of top talent in its executive suite, says Robert Bradford, president and CEOof the Center for Simplified Strategic Planning. “If the company were in a more difficultstrategic situation, they might look outside,” he says. “Given their performance, I wouldn’t.”
Chambers has done all the right things to ensure a smooth succession, says Scott Saslow,founder and CEO of the Institute of Executive Development. The process so far seems “nearperfect,” he says: Chambers has pre-announced his intentions years in advance; he hasmentioned specific executives who are internal candidates for the job; he would leave thecompany on very solid financial footing. “It is rare to see all three of these conditions,” Saslowsays.
Most boards of directors facing a transition aren’t as lucky as Cisco’s will be, Saslowadds. “Thevast majority don’t think they have enough ready successors for the CEO position,” Saslowsays. “Given that Chambers has stated that Cisco has several, they appear to be way ahead ofthe market.”
Cisco’s retirement rumors once worried Renaud, the 451 Research analyst. That’s no longer so. “John has done a great job in recent years of building a succession plan and strong bench inpreparation for an inevitable transition,” Renaud says. “That wasn’t always the case, and I’dsay his bench now is the strongest I’ve ever seen it. If he was going to retire, the companywould be left in good shape.”
上周四晚间,甲骨文公司(Oracle)突然宣布,创始人拉里•埃里森将卸任CEO。埃里森担任该职位已有37年,以后他将担任该公司执行董事长兼首席技术官,萨夫拉•卡茨和马克•赫德将出任思科公司联席CEO。年届七旬的埃里森,是科技领域迄今为止任职时间最长的首席执行官,不过,担任首席执行官数十年之久的,并非只有埃里森一人。
本文关键字: 思科CEO钱伯斯的退休疑云
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