Siebel Systems Replaces CEO for Second Time in Less than a Year

Strategic Insights -

Siebel Systems, a pioneer in the software industry, continues to struggle with falling sales and investor pressure, leading to the second CEO change in less than a year. George Shaheen, a veteran technology executive, has taken over as CEO from Mike Lawrie, who was appointed just eight months ago. The company's struggles have been attributed to a slump in big new call-center projects and competition from companies like Salesforce.com. Despite the challenges, Siebel's shares have risen since the company's profit warning last week, sparking speculation that it may be put up for sale or pay out its $2.2 billion cash hoard to shareholders.

Key Takeaways:

  • Siebel Systems has replaced its CEO for the second time in less than a year, with George Shaheen taking over from Mike Lawrie.
  • The company's sales of new software licenses in the first quarter of the year were lower than at any time since 1998.
  • Siebel is struggling with a slump in big new call-center and other projects, as well as competition from companies like Salesforce.com.
  • The company has a cash hoard of $2.2 billion, which has sparked speculation that it may be sold or payout to shareholders.
  • Oracle has included Siebel in the past on a list of companies it wants to buy.
  • George Shaheen, the new CEO, has a reputation for being a successful industry executive, having increased revenues from $1 billion to $9 billion at Andersen Consulting (now Accenture).
  • Tom Siebel, the founder and chairman of the company, played a role in Mike Lawrie's departure, stating that it was "all about performance."

Statistics:

  • Sales of new software licenses in the first quarter of the year were lower than at any time since 1998.
  • Siebel Systems' cash hoard sits at $2.2 billion.
  • George Shaheen increased Andersen Consulting's revenues from $1 billion to $9 billion during his tenure as head of the company.
  • Oracle has included Siebel in the past on a list of companies it wants to buy.
  • The number of days Mike Lawrie held the position of CEO is 245 (May 2004 to March 2005).

Sources:

  • Financial Times Limited 2005.