ARM CEO to Step Down; Shares Fall
The chief executive of ARM Holdings Warren East is stepping down after nearly 12 years in the role, making way for another ARM insider as the British electronic chip designer looks to expand globally.
Simon Segars, the current group president, who has been at ARM since 1991, will replace 51-year-old East from July, the company said in a surprise statement on Tuesday.
Shares of the company fell 1.4 percent in early trade. East, who has been with the firm since 1994, said it was time to move on.
"Obviously there's a part of me that would like to stay in this business forever but we built the business with a team on the basis of collaborative thinking and planning far into the future," East said on a conference call with reporters on Tuesday.
Buoyant demand for its processor designs, used in smartphones and tablets, led the Cambridge-based firm's shares to a 12-year high last month.
"I've tried in install a really long-term view into our product planning and business development approach and as part of that long-term view I believe now is the right time to bring in new leadership, somebody who can push the thinking even further forward and be sure to be around to implement those future plans," East said.
"ARM is a global company and Simon has a global outlook." The 45-year-old Segars, who currently looks after the company's intellectual property divisions, said he did not expect to make any significant changes to company strategy.
"I've been here almost the entire time that ARM has been in existence and worked in the management team for most of that time, and worked very closely with Warren developing the strategy that we are now executing," Segars said.
"You shouldn't really expect that that is going to change suddenly because the strategy that we have now I've been part of building and believe in very strongly."
Shares in the company were down 1.3 percent at 908.5 pence in early trade on Tuesday, slightly under performing the London market's FTSE 100 index