- After about a year in the position
- Hong Hou taking over
(exechange) — Camarillo, California, June 7, 2024 — Paul Pickle, chief executive of Semtech, leaves his position. As announced by Semtech Corp. in a news release and in a regulatory filing published on Friday, June 7, 2024, Paul H. Pickle has left his post as chief executive officer at the semiconductor provider, after about a year in the role, effective June 6, 2024.
Generally speaking, it raises questions when a CEO leaves his post abruptly and after a short tenure.
Paul Pickle’s duties as CEO will be taken over by Hong Q. Hou, previously president of the Semiconductor Group at Brooks Automation.
Already a director
Hou has already been a member of the board of directors of Semtech. Generally speaking, most director-turned-CEO appointments occur following a sudden resignation of the outgoing CEO and signal a lack of preparedness on the company’s part to groom internal talent. Directors-turned-executives represent a blend of outsider and insider.
They don’t have the constraints of a pure insider when it comes to leading painful changes or making unpopular decisions, and they have more company knowledge than a pure outsider.
Having been a director, Hou understands the expectations and dynamics of the board and has knowledge of Semtech’s organization, risk-management practices and strategy.
“Differences between the Board and Mr. Pickle”
The management change is explained as follows. Semtech stated: “The Board’s decision resulted from differences between the Board and Mr. Pickle on how the CEO and the Board should work together in the best interests of stockholders.”
Precise information regarding Paul Pickle’s future plans was not immediately available.
“Departure/terminated”
Semtech said: “Dr. Hou’s appointment follows Paul H. Pickle’s departure as President and Chief Executive Officer.”
Semtech further said: “On June 6, 2024, the Board of Directors … of Semtech Corporation … terminated Paul H. Pickle as President and Chief Executive Officer of the Company, without cause.”
“Unrelated to the Company’s operational or financial performance”
Semtech stated, regarding the change: “Mr. Pickle’s termination was unrelated to the Company’s operational or financial performance, did not involve a violation of the Company’s code of conduct, and does not have an impact on any previously reported financial statements.”
Share price increase since June 2023
The announcement follows an increase in Semtech Corp.’s share price of 68% since June 2023. June 2023 is the month in which Pickle’s tenure as CEO began.
In the position of CEO since 2023
Paul Pickle became CEO of the Company in 2023.
In connection with Pickle’s termination, the Board withdrew Pickle as a director nominee to stand for election to the Board at the Company’s 2024 annual meeting of stockholders.
Furthermore, the Board decreased the size of the Board, effective as of the Annual Meeting, from 12 to 11 directors in connection with the withdrawal of Pickle as a director nominee.
Paul Pickle has served as the President and Chief Executive Officer of the Company since June 2023 and was the President and Chief Executive Officer and a member of the Board of Lantronix Corporation, a provider of secure data access and management solutions for the industrial Internet of Things (IoT), from April 2019 to June 2023.
Prior, Pickle served as President and Chief Operating Officer of Microsemi Corporation, a provider of semiconductor and system solutions, from November 2013 until Microsemi was acquired by Microchip Technology Inc. in May 2018.
Prior to his position as President and Chief Operating Officer, he served Microsemi as Executive Vice President, leading business operations of the company’s Integrated Circuits group, where he played an integral role in the planning, developing, and execution of Microsemi’s leading edge IC solutions for communications, industrial, aerospace, and defense/security markets.
Pickle played a significant role in the successful expansion of Microsemi’s product portfolio, system and software solutions in the communications segment.
During Pickle’s tenure at Microsemi that started in 2000, he held positions of increasing responsibility, including Corporate Vice President of Field Applications Engineering, as well as other senior positions in both sales and marketing/product development, including running Microsemi’s Analog and Mixed-Signal team as well as the Integrated Circuit group.
No statement by Paul Pickle
The announcement of his departure as CEO does not include a statement by Paul Pickle.
The above text is an excerpt from the exechange report 24.2024 ($), publication date June 10, 2024.