Management Turnover as Change Agent

Monday, May 19, 2008

Dell Reshuffles the Deck - Bringing in New CFO

Dell Computer Dell (NASDAQ) is reshuffling some chairs again.  Today, the company announced,
... Brian Gladden will succeed Don Carty, vice chairman and Chief Financial Officer, as senior vice president and CFO effective June 13, 2008. Mr. Carty has resigned, effective June 13. He will remain a member of the board of directors, which he joined in 1992.

Mr. Gladden joins Dell May 20 as Senior Vice President and will assume the CFO role when Mr. Carty leaves on June 13. Reporting to Michael Dell, CEO
and chairman, Mr. Gladden will be responsible for all aspects of Dell’s finance function including accounting, financial planning and analysis, tax, treasury, audit, and investor relations.

Prior to joining Dell, Mr. Gladden was President and Chief Executive Officer of SABIC Innovative Plastics Holding BV, formerly GE Plastics, and among the world's largest producers of high-performance polymers used by electronics, office equipment, computer, and automotive manufacturers.
As Hewlett Packard HPQ (NYSE) continues to shine and now is working to acquire EDS, Dell finds itself under increasing pressure once again.  The Gladden appointment
looks good on paper but it is worrisome that Carty is leaving after only seventeen months under his belt at the firm.   Carty was originally hired to help the company through an internal investigation of the company's accounting practices.  Alexei Oreskovic in a story for referred to
Dell spokesperson Jess Blackbrun who indicated,
the switch was planned and expected by Dell and Carty, following the completion of the accounting probe late last year.

"It never really was intended for him to stay on the role for an extended period," said Blackburn.
I have no prior knowledge but I am suspect of the explanation.  Keep a close eye on Gladden and Dell in particular.

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