President and CEO of Marvell Resigns
On April 5th The husband and wife team of Marvell Technology Group founder and Chief Executive Officer Sehat Sutardja along with President Weili Dai announced they will be stepping down from both of their respective management posts. Although Sehat Sutardja and Weili Dai have both resigned from their active management posts they will still remain on the Board of Directors with Sehat Sutardja continuing to hold his position as chairman.
Subsequently, the Board will spearhead and conduct a search for a new CEO and president in conjunction with a leading executive search firm, the company announced in a press release. The dismissal of Sehat and his wife Weili came on the heels of a Marvell board audit committee which issued management edicts that identified “tone at the top” problems. Marvell’s sales and finance personnel have recently failed to meet revenue targets and the edicts have put undue pressure on everyone involved to produce.
Financial analysts though have openly applauded Marvell’s change in management which leads most to believe that this change will actually improve Marvell’s financial performance and/or will lead to the eventual sale of the company. Sehat and his wife’s forced resignation is nothing new as they follow suit in a long line of technology oriented company founders that have been deposed by CEOs that are more financially-tuned and the writing is on the wall for the dismantling of the company according to the Wall Street Journal.
In fact, since the deposing of Sehat and his wife, Marvell’s stock price has jumped 13% no doubt in response to the new turn of events. Over 20 years ago, Sehat and his wife started their company in the hard disk drive (HDD) market. They were the first to introduce digital read channels (Serial data stream decoders) utilizing high-speed sampling and DSP filtering in order to increase disk drive data densities.
To this day Marvell remains the market leader in disk drive controllers even ahead of rival Avago. Despite the proliferation of solid state drivers, Marvell reported no downsizing of their disk drive business and is reporting the increasing penetration of the China cell phone market with its baseband controllers. Though the old vanguard of leadership has been lead quietly into the night, it looks as though Marvell’s future is still very bright indeed.