Motorola CEO Galvin Resigns Amid Disagreements With Board
By Carlo Longino, Sat Sep 20 03:00:00 GMT 2003
Motorola Chairman and Chief Executive Chris Galvin resigned Friday after clashes with the company's board over strategy.
Galvin's resignation brings to a close his six years at the helm, and three generations of Galvin family rule of the company. He lead the company through the tech and telecom boom and burst, seeing its share values decline by 46 percent while he was charge, while the Dow industrials gained 50 percent over the same period.
Though the company recently returned to profitability, Galvin struggled to turn around its semiconductor and mobile phone business, its two biggest units, and though the timing of Galvin's resignation may have been surprising, the resignation itself wasn't unexpected -- Forbes even wonders why it took so long.
The company's struggles, though exacerbated by the telecom industry's slump and the global economy's downturn, are generally traced back to one key point: Motorola's underestimation of the impact of digital mobile telephony and concentration on analog in the mid-90s, allowing rivals to steal a march on the company -- and never look back.