Dell Inc. Thursday said founder Michael Dell would relinquish his role as chief executive, but remain chairman, making the computer seller the latest to split the two top roles as companies become more diligent about reform.
Dell named Kevin Rollins, its president and chief operating officer, as the next CEO, effective July 16. Dell, which ranks second to Hewlett-Packard Co. in the personal computer market, said Rollins would remain president and would also be nominated for election to the Dell board.
Michael Dell will “remain deeply involved in the company’s day-to-day business,” the company said. T
Dell spokesman T.R. Reid said the move reflects the current roles of the two executives, who work in what Dell calls the ”Office of the Chief Executive Officer.”
“Michael’s emphasis has been on customer trends and (research and development) ... while Kevin’s leanings are strongly to development and execution of strategy. The titles to a certain degree are catching up with that,” he said.
Wall Street analysts were unfazed by the announcement, since Michael Dell will remain as both chairman and a big shareholder. He founded Dell 20 years ago from his college dorm room and has built it into a powerhouse, pioneering the direct-sales model for computers.
Rollins was hired as a consultant to Dell in 1993, and joined Dell officially in 1996 to run its Americas business. He was promoted to president and COO in 2001.
“Kevin and Michael have been working together for a very long time and I think the Street is very comfortable with Kevin’s leadership,” said Dan Niles, chief executive of San Francisco-based Neuberger Berman Technology Management.
Splitting the offices of chairman and chief executive is high on the list of corporate governance reform advocates, who favor diluting power at the top of large companies.
In recent weeks, other high-profile companies have made a similar split, including software maker Oracle Corp., where Larry Ellison dropped his chairman title, and Walt Disney Co., which Wednesday stripped that role from Michael Eisner.
Rollins will succeed Mort Topfer, a former vice chairman, on Dell’s board. Topfer will not stand for reelection, Dell said.
