One Word for Michael Dell
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Gladden will be "familiar with the pace and requirements of Dell's business," Dell spokesman David Frink said. The computer maker, he said, sought a C.F.O. with experience at a multinational public company, a background in finance, and a firm grounding in technology, and he found those traits in Gladden, he said.
In 20 years at General Electric, Gladden served as chief financial officer of G.E. Plastics and general manager of the division's resins business. He moved to Sabic when G.E. sold its plastics division to the Saudi company in 2007 for $11.6 billion. He has a bachelor's degree from Millersville University in Pennsylvania.
Gladden will become Dell's third chief finance officer since the end of 2006. That's when Donald Carty, the former head of American Airlines, was tapped to steer the company through an accounting investigation, replacing James Schneider.
Carty, who also came from an unrelated industry, didn't have what it took to be a permanent finance chief, said Shaw Wu, an analyst with American Technology Research.
"We didn't think he was really the right guy from the beginning," Wu said. "I'm sure he has a lot of experience and wisdom, but, in our opinion, he was more of an interim C.F.O."
When he takes over next month, Gladden will be asked to make good on Carty's promise to cut costs by $3 billion by 2011. "We have instituted a maniacal focus and discipline around all costs," Carty said on a conference call with financial analysts last month, according to a transcript.
Gladden should know a thing or two about managing costs, since petroleum is the key feedstock for plastics. Because of its position as a Saudi company, Sabic has ready access to cheap petroleum, giving it one of the lowest cost positions in its industry—a hallmark of Dell's early successes.
He should also be familiar with the PC industry's interest in emerging markets. Sabic has a large presence in Asia, and is well positioned in China, Rappaport said.
Dell lost its position as the world's largest PC maker to Hewlett-Packard two years ago. It's shedding thousands of staff and partnering with lower-cost manufacturers to keep expenses down, while developing more appealing laptops for the consumer market.
Gladden was not available for an interview, Frink, the Dell spokesman, said.
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