Moto Supply Chains: Freescales CEO Resigns
>> Freescale CEO Michel Mayer Resigns
Outgoing chairman and CEO Michel Mayer will continue in his current role at the embedded semiconductors company until a successor has been identified.
Suzanne Deffree
Electronic News
2/8/2008
edn.com
Freescale Semiconductor chairman and CEO Michel Mayer has decided to resign from the embedded semiconductors company. Making the announcement today, Freescale said its board of directors has initiated a search for a new CEO and that Mayer will continue in his current role until a successor has been identified. Mayer also will remain chairman of the board until the transition is effective, according to the company.
Mayer joined Freescale in May 2004, just before it completed its separation from Motorola and became a public company in July 2004. Mayer was also at the helm when Freescale became the largest leveraged buy-out (LBO) in the history of the technology industry in December 2006.
“The Freescale team executed well over the last four years. Following a successful IPO, we dramatically improved the operating profitability of the company and strengthened the leadership team,” said Mayer in a statement. “One year into a successful LBO, the time is right for me and my family to take some time off before exploring new challenges. The company is well positioned to continue its transformation.”
Indeed, Freescale is still undergoing its “transformation” to a fully independent company from Motorola. While its LBO is firmly in place, Freescale’s financials continue to be strongly tied to Motorola’s performance. The Austin-based company last month reported a 10% drop in 2007 sales, hurt by its wireless business, which claims Motorola’s struggling mobile devices unit as one of its largest customers. Motorola’s handset business has seen a fall from grace since its Razr line premiered and is now behind Nokia and Samsung in terms of shipments and market share. Motorola has reported it may separate the business in an effort to recapture the market leadership the unit once held and improve company shareholder value.
Freescale’s board of directors thanked Mayer for his contributions, crediting the outgoing executive as successfully transitioning Freescale from a public to private company at a challenging time in the industry.
“Freescale is in a strong position today and we are confident it will continue to strengthen going forward. We will work closely with Michel and the senior management team to ensure a smooth transition,” said Daniel F. Akerson, director of Freescale and managing director of The Carlyle Group, in the statement.
Freescale this week also announced plans to acquire SigmaTel Inc for $110 million as it moves to add to its multimedia-focused analog and mixed-signal IC portfolio. ###
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