Siebel chief steps down
Published: 04 May 2004 08:45 BST
Tom Siebel has stepped down as chief executive of Siebel Systems, the business software company he founded in the 90s and made synonymous with the multibillion-dollar customer relationship management software market.
Siebel will continue to serve as chairman, and IBM executive Mike Lawrie has been hired to assume the chief executive post, the company said on Monday. Lawrie, a 26-year IBM veteran, resigned the same day as senior vice president and group executive of sales and distribution at IBM, causing an executive reshuffle there.
Speaking via teleconference, Siebel said the move was a long time in the making.
"It was little over a year ago that I made the decision to separate the roles of chairman and chief executive," Siebel said. "After giving it a lot of thought... I was absolutely certain this was the right decision for the company. I just can't image a better outcome for the company."
Other companies, including Siebel rival Oracle, have followed a similar path as a new emphasis on corporate governance emerged in the aftermath of numerous business scandals. Larry Ellison, Siebel's counterpart at Oracle, recently gave up his role as chairman to retain the chief executive post, reassigning the company's chief financial officer to fill the vacant post.
Some observers expressed surprise at the company's decision to bring in an outsider and that Siebel, who has been the face and voice of the company, would give up the more hands-on job of chief executive.
"Tom is such a control person," said former Siebel executive Craig Ramsey, now on the board of rival Salesforce.com. "He's put his stamp on the company."
A Siebel competitor said investors, unhappy about the company's falling fortunes in recent years, may have sought an executive shake-up. "Tom Siebel has been under a tremendous amount of pressure," said Salesforce chief executive Marc Benioff, who years ago worked with Siebel at Oracle under Ellison, as did Ramsey.
Siebel Systems appears to be emerging from a financial rough patch. The company recently reported a sixfold increase in first-quarter profit and double-digit growth in software sales. But the surge in business comes after three years of lackluster earnings and a restructuring that saw the departure of thousands of employees.
After leading his company through an impressive growth spurt in the late 90s, Siebel came under fire for failing to foresee shrinking demand for its products in the early days of the information technology industry's recession. The company has also been the subject of two regulatory investigations -- one of which is ongoing -- and the target of numerous shareholder lawsuits. One of the big complaints from investors during the company's fall from glory was its executive compensation plan, which relied on generous stock option grants.
During Monday's teleconference, Siebel said he intends to remain active in the company, assisting with key partner and customer relationships and helping to lead the executive transition. During the same call, Lawrie said he had no immediate plans for significant management or structural changes for the company.
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