Richard Templeton, Chairman, President and CEO, Texas Instruments Inc. , speaks during a House Science, Space, and Technology Committee hearing in Washington, D.C., United States, on Wednesday, February 6, 2013. The session was titled “American Competitiveness: The Role of Research and Development.”
Andrew Harrier | bloomberg | Getty Images
Texas Instruments Inc It announced Thursday that its chief executive of nearly 19 years, Rich Templeton, will step down on April 1, to be replaced by Haviv Ilan, chief operating officer. Templeton will remain CEO of the chipmaker, and Texas Instruments stock settled in extended trading after the disclosure.
The 92-year-old company called the change a “well-planned succession” in a statement. But Texas Instruments implemented a similar plan in 2018 that backfired. The company said Templeton would step down to make room for its chief operating officer at the time, Brian Croucher, in what it also called a “well-planned succession.” One month after the CEO change, she said, Croucher had left, and Templeton was reclaiming the top role.
Related investment news
“Crutcher resigned due to violations of the company’s code of conduct,” Texas Instruments said at the time. “The violations relate to personal conduct that is inconsistent with our core ethics and values, but not related to company strategy, operations, or financial reporting.”
Under Templeton’s leadership, which began on May 1, 2004, Texas Instruments stock grew 581%, outperforming VanEck Semiconductor Exchange-traded funds, which are up 549% over the same period. Templeton took over the CEO position from Tom Engipus, who held the position for nearly eight years.
Ilan came to Texas Instruments in 1999 via the company’s acquisition of Israeli wireless startup Butterfly. Prior to becoming Chief Operating Officer of Texas Instruments, he was Senior Vice President of the Analog Signal Series and High Performance Analog Divisions.
Texas Instruments reported net profit of $2.3 billion on revenue of $5.24 billion for the quarter ended September 30, which represents earnings growth of 18% and revenue growth of 13%. The majority of the revenue comes from analog products, including chips that alter signals to data for other chips to mess with. More than a third of the revenue comes from industry categories such as energy, healthcare and defense.
Watch: Stacy Rasgon of Bernstein says Texas Instruments has weathered the losses of the pandemic