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Intel CEO Gelsinger Resigns from VMware Board, Effective Immediately

Intel CEO Pat Gelsinger

(Image credit: Intel )

Pat Gelsinger recently resigned from his role as CEO of VMware to become the CEO of Intel. At the time, Gelsinger had planned to keep his position on VMware's Board of Directors. Now, as spotted by CRN, VMware has filed regulatory paperwork with the SEC saying that Pat Gelsinger notified VMware on April 21, 2021, that he would resign his post on the company's Board of Directors and all other VMware committees, "effective immediately."

Gelsinger certainly has his hands full as he embarks on an ambitious plan to transform Intel, which has plenty of challenges of its own, into a company that still produces its own chips but also produces custom chips for other companies, much like we see with other third-party foundries like TSMC.

To build fully custom chips for other companies, Intel will create Intel Foundry Services (ISF) that will function as its own independent unit inside the company, complete with its own P&L and leadership structure. That means that Gelsinger will also be responsible for constructing the new ISF organization from the ground up, all while quarterbacking the relationships with the 50+ potential ISF customers the company has announced it is already working with. With his own new organization to build, it makes sense for Gelsinger to focus on the task at hand.

Gelsinger's decision also isn't entirely surprising given that VMware is undergoing a rather large transition itself as Dell Technologies spins off its 81% equity ownership of the firm so it can operate as its own independent business. Dell announced this development last week, and the transition would obviously add quite a bit more complexity to Gelsinger's workload on the VMware Board of Directors.

It isn't uncommon for CEOs to hold Board positions with other firms — AMD CEO Lisa Su serves on Cisco's Board, for instance. Gelsinger's LinkedIn profile currently also lists Board positions with Gloo, a software company, and Transforming the Bay with Christ, a faith-based organization. It's unclear if Gelsinger plans to continue in those roles.

Gelsinger's VMware departure seems amicable: VMware told CRN that “We are grateful for his many years of service on the Board, and for his tenure as CEO of VMware,” and noted that this was the parting was due to Gelsinger's personal decision "given the demands of his new position as CEO of Intel."

VMware has yet to announce Gelsinger's replacement for its Board, though Zane Roe has already filled his CEO position on an interim basis. 

Paul Alcorn

Paul Alcorn is the Deputy Managing Editor for Tom's Hardware US. He writes news and reviews on CPUs, storage and enterprise hardware.

  • Yuka
    Oh, so he left the obvious conflict of interests as an afterthought? XD

    I'll just hope there was a hint of realization that there would be a conflict of interests there... Just a tiny little hope.

    Cheers!
    Reply