Dell Inc. said on Tuesday Chief Executive Kevin Rollins continues to enjoy the full support of founder and Chairman Michael Dell despite suggestions by some analysts that the world's No. 1 personal computer maker needs new leadership to revive growth.
Michael has shown his full support of Kevin, Dell spokesman Bob Pearson told Reuters. They've been working together since 1996. For over 10 years, they've been making decisions together.
The Wall Street Journal's Heard on the Street column, citing regulatory filings, on Tuesday reported that several large institutional investors had sold Dell stock, including Fidelity Investments, Wellington Management Co. and OppenheimerFunds Inc.
The report quoted some analysts as saying Rollins should bear some responsibility for Dell's woes, including several quarters of slowing growth. Dell's stock is down 28 percent this year.
But Pearson said nothing had changed in Michael Dell's view of Rollins despite a series of problems reported by the company last week, including a 51 percent decline in quarterly profit, the biggest electronics recall in U.S. history and disclosure of a yearlong regulatory investigation into Dell's accounting.
Dell said the informal investigation by the U.S. Securities and Exchange Commission had not turned up any matters that would have a material financial impact on the company.
Dell of Round Rock, Texas, is also trying to restore customer confidence and improve its image after the company recalled 4.1 million notebook computer battery cells made by Sony Corp. (6758.T). Dell has received reports of at least six battery cells overheating or catching fire. No injuries have been reported.
Rollins, a former Bain & Co. consultant, joined Dell in 1996 and became CEO in 2004, after Michael Dell relinquished that role to serve only as the company's chairman. Michael Dell founded the company in his University of Texas dormitory room in 1984.