Intel considers an outside CEO, taps headhunters, sources say

Intel is considering hiring an external candidate to replace ousted CEO Pat Gelsinger and has hired executive search firm Spencer Stuart to identify potential successors, according to people familiar with the matter, who requested anonymity due to the confidential nature of the discussions.

Intel’s board has also made overtures to recently departed director Lip-Bu Tan about whether he would be interested in the top job at the struggling chipmaker, said one of the people.

An outside CEO would break from tradition at the chipmaker, which has historically promoted from within. While Gelsinger was hired from VMware in 2021, he had spent decades at the company in roles of increasing seniority. Gelsinger’s predecessor Bob Swan was Intel’s first true outside hire, but Swan was considered by many to be a stop-gap CEO and was then removed amid pressure from activist investor Third Point.

The shortlist of candidates could not be fully learned, but Bloomberg citing people familiar with the matter reported that Marvell chief Matt Murphy was among those being considered.

Representatives for Intel did not return multiple requests for comment. Tan, whose involvement in the replacement process was first reported by Reuters, could not be reached for comment.

Interim executive chair Frank Yeary and a board-level committee are overseeing the search for a new CEO, Intel disclosed in a regulatory filing, and the process remains in its early stages.

Intel’s board may opt for an internal promotion, and internal candidates could include CFO David Zinsner or Intel products chief MJ Holthaus, the interim co-CEOs.

Intel abruptly ousted CEO Pat Gelsinger over the weekend, with people familiar with the matter previously saying that the board had lost faith in his ability to execute on a turnaround at the chipmaker, which has been lagging behind Nvidia for more than a year.

Gelsinger will receive roughly $10 million in severance, Intel disclosed in a regulatory filing.