STMicroelectronics NV said Thursday (April 27) that President and CEO Carlo Bozotti agreed to remain at the helm of the company for one more year. ST also elevated his presumed successor, Chief Operating Officer Jean-Marc Chery, to the position of deputy CEO.

On a first quarter earnings call Thursday), Bozotti said he agreed to remain in his position until July 2018.

“I have accepted the proposal to extend my role as president and CEO for one more year and I am fully committed to driving this company forward, with the support of my deputy CEO, Jean-Marc Chery, and a strong executive team,” Bozotti said.

Bozotti’s previous contract was due to expire next month and the company has reportedly been searching for a replacement. Bozotti, an Italian who has been CEO of ST since 2005, turns 65 this year.

The French and Italian governments are both stakeholders in ST, with each holding a 14 percent stake in the firm. There has been speculation that they have failed to agree on whether the new CEO should be French or Italian, with each supposedly vetoing the other’s choices.

Asked whether the creation of a Deputy CEO position was the first step in a new succession plan, Bozotti declined to comment, highlighting instead that Chery’s contribution to the company’s turnaround up to now has been “very important.”

Chery, who is French, has been with the company since its formation in 1987. As COO, and previously chief technology manager, Chery has managed manufacturing technology and digital products. His new role will give him increased responsibility for sales and marketing.

Jerome Ramel, an analyst at investment firm Exane BNP Paribas, told EE Times that the announcement that Bozotti would depart after one more year is not surprising. Ramel said it was known a year ago that ST had hired an executive recruiting firm to find Bozotti's replacement.

But over the course of the year, it became clear that Bozotti would be credited with turning ST around financially, so it was not surprising that ST's board chose to give him another year, Ramel said.

"My understanding is that the headhunter hasn't found anyone that the board agreed upon," Ramel said.

By: DocMemory
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