Avnet has named former Lenovo leader Bill Amelio as its CEO.
Amelio held the job since July after longtime leader Rick Hamada stepped down. The outfit needs to make a few changes particularly when it comes to making more cash for shareholders and the adoption of emerging technologies.
William Schumann, chairman of Avnet’s board, said in a statement that the company was lucky to have someone of Amelio’s character and experience.
“He brings energy and focus to the business, and the board unanimously agreed that making him the permanent CEO was in the best interest of our customers, employees and shareholders.”
Amelio said that the company had an experienced management team and an engaged workforce.
“By better aligning those resources with our competitive solutions specialist, embedded and supply chain strengths, Avnet will undoubtedly be positioned to achieve profitable growth for our shareholders.”
Amelio told investors he is busy identifying and doubling down on the profit-generating sources within Avnet, and fixing or exiting from Avnet’s areas of poor profitability.
He will be rolling out new business management systems that emphasise accountability, address organisational barriers and allow the distributor to work more effectively through collective operating groups.
Amelio said he values Avnet’s Internet of Things and digital technologies initiatives, he is more interested in getting the outfit’s margin and return performance more in line with long-term financial goals.
Amelio will earn a prorated base salary of $850,000 annually and be eligible for a bonus of up to 100 percent of his base compensation, according to a July filing with the U.S. Securities and Exchange Commission. He also received an award of stock options and restricted stock units worth a total of $2 million.
