EMC CEO Joe Tucci plans to become executive chairman at the end of 2012 and hand the reins to a successor.
Tucci, speaking to the Wall Street Journal, in a story about executive chairmen outlined the plan. Tucci will be chairman for two years and help with sales, acquisitions and other tasks. After that, the successor would consolidate roles. Pat Gelsinger, chief operating officer, would be a favorite for the position.
For EMC, that succession plan playbook has been used before. When Tucci landed the CEO gig in 2001, former chief Michael Ruettgers stayed as an involved chairman.
EMC's succession plan seems workable. For starters, EMC looks methodical. And it also has a good bench of executives to choose an inside CEO.
In its proxy filing, here's how EMC described its succession planning:
We engage in succession planning at all levels of the Company. With respect to Board succession planning, the Governance Committee regularly evaluates the size and composition of the Board, giving consideration to the changing circumstances of the Company and the then current Board membership. The Governance Committee and the Board of Directors regularly consider succession plans for membership of the Board committees and committee chairs as well as the needs of the Board on an ongoing basis.
The Leadership and Compensation Committee regularly reviews EMC's CEO succession plan (both long- and short-term plans), considers candidates, reviews and monitors the career development of potential successors, considers the Company's needs in light of its strategic direction, and briefs the Board. The Board regularly reviews EMC's CEO succession plan in both plenary session and executive session. The Board also ensures that it has exposure to senior officers who have the potential to succeed the CEO and other senior management positions.