Dirk Meyer, the tough-minded engineer who rose to the top of Advanced Micro Devices Inc., abruptly resigned as CEO on Monday as the chipmaker's board signaled that it was time for a leadership change.
Meyer, 49, who took the reins of the company in the summer of 2008, had steered AMD through a difficult restructuring of its operations and a comprehensive retooling of its product portfolio.
But the board wanted more. Meyer met with the board late last week and then resigned Monday, effective immediately.
"The board believes we have the opportunity to create increased shareholder value over time," said Chairman Bruce Claflin. "This will require the company to have significant growth, establish market leadership and generate superior financial returns. We believe a change in leadership at this time will accelerate the company's ability to accomplish these objectives."
The move shocked industry analysts, many of whom said Meyer had done a good job. It also was a surprise to investors; AMD shares fell more than 4 percent in extended trading.
AMD, which has been in Austin since the late 1970s, is one of Austin's most important high-tech employers. The company has nearly 2,500 employees, plus contract workers, at its engineering and chip-design campus in Southwest Austin. Although its official headquarters is in Sunnyvale, Calif., Meyer and most other top executives live in Austin.
Claflin, an AMD board member since 2003, has been named executive chairman and head of the search committee to find Meyer's replacement.
Thomas Seifert, the company's chief financial officer, will be the interim CEO, but he has asked not to be considered as a permanent replacement for Meyer.
Company spokesman Drew Prairie said the resignation was tied to the board's push for stronger growth based on AMD's recent product improvements.
"While pleased with the company's progress, the board felt that AMD had untapped potential and that a change in leadership could accelerate our ability to grow," Prairie said.
Under Meyer, AMD has improved its finances after a long string of losses and recently rolled out its most important new product line in years, the Fusion family of combination graphics and processor chips.
