NetApp: Georgens New Chairman as Warmenhoven Retires

NetApp (NTAP) has reshuffled its executive suite, naming Tom Georgens, the storage vendor’s current president and chief executive, as its new chairman to replace Dan Warmenhoven, a 20-year company veteran who will retire at the close of his term this September.

Georgens, who took NetApp’s helm from Warmenhoven in 2009, now will command all three of the company’s top roles. Warmenhoven said he will conclude his term on the company’s board at its annual shareholders’ meeting.

“I want to express my deep appreciation for Dan’s many contributions as chairman of the board at NetApp,” said Georgens. “Dan’s extensive experience has been instrumental to our ongoing efforts to deliver enhanced value to our shareholders. His leadership, commitment and guidance will be missed and I wish him well in his future endeavors.”

NetApp also elevated Robert Salmon, formerly its Worldwide Field Operations vice president who’s been with the company since 1994, to Go-To-Market Operations president, a newly created organization that melds its Field Operations, Global Marketing and Customer Success operations.

Salmon is tasked with leading the GTM unit to tightly align and execute on NetApp’s strategic priorities and opportunities.

“We are building on the strengths and achievements of three customer-centric functions, and this new organization ensures we are coordinated in how we leverage our technology leadership and our partner ecosystem to achieve great outcomes for our customers,” Salmon said.

NetApp also said that Nicholas Moore, its lead independent director, will retire from the board at the same time as Warmenhoven. Moore will be replaced in that role by Michael Nevens, who has been seated on the NetApp board since December 2009.

Last month, NetApp said it will chop 600 jobs, or 5 percent of its employees, blaming a “constrained IT spending environment” for the layoffs. The layoffs are expected to extend through Q1 FY 2015 and projected to cost the vendor up to $45 million in cash, the majority of which it will record in FQ4 2014.

Last year, NetApp laid off 900 employees, smaller than the expected 1,300 but still a significant number, under pressure from activist investor Elliott Management to deliver more shareholder value. Those layoffs mostly involved NetApp’s OEM efforts.

In its recently completed FQ3, NetApp posted solid earnings of $192 million, or 55 cents a share, on sales of $1.61 billion. The company is forecasting Q4 revenue at $1.62 billion to $1.72 billion, slightly below Wall Street’s expectations.