Another top Red Hat exec heads to retirement

Another RH exec. cashes out. I'd interpret it as a resounding vote of "no confidence" and seems they know something us worker bees don't.

https://www.bizjournals.com/triangle/news/2021/02/08/second-red-hat-exec-announces-retirement-in-2021.html

By: Lauren Ohnesorge – Senior Staff Writer, Triangle Business Journal
Feb 8, 2021, 7:30am EST

Two years after banking millions in IBM’s 2019 buyout, another Red Hat executive has left the Raleigh-based open source software company.

DeLisa Alexander, the attorney-turned chief people officer at Red Hat, left the firm at the end of January.

A Red Hat spokeswoman confirmed the news in an email to TBJ. Alexander’s LinkedIn profile listed her as “retired" Friday.

'We wish her the very best," spokeswoman Stephanie Wonderlick said. "We have not yet named her replacement."

Alexander spent nearly 20 years at Red Hat. She joined the company in 2001 as Red Hat’s second attorney. Five years later, she joined the people department, moving up through the ranks. She was named chief people officer in 2011.

When IBM (NYSE: IBM) bought out Red Hat for $34 billion in 2019, she was among those benefiting the most. Securities filings show that in conjunction with the deal close, Alexander reported a $6.9 million stock sale.

As CPO, Alexander led the department responsible for global human resources. But her activities in Raleigh extend beyond Red Hat as she was a past chair of the Raleigh Chamber of Commerce.

Alexander’s retirement follows a similar announcement from another longtime Red Hat exec, Arun Oberoi, executive vice president of global sales and services. He, like Alexander, saw major returns when IBM bought out Red Hat. Oberoi reported a stock sale valued at $26.8 million when the deal closed.

They're leaving Red Hat at a pivotal time for its parent company.

While Red Hat saw its revenue increase 18 percent last year, IBM was at $73.6 billion, down about 5 percent. IBM is planning to spin off its managed infrastructure services unit so it can push more of its focus toward its cloud business. And once that deal closes, there will be even more pressure to deliver, analysts have said.

“Once this spinoff happens, Red Hat becomes the growth engine of IBM,” Edward Jones Analyst Logan Purk said last month.

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IBM has plenty of lawyers and “people” officers. They will not miss her, and she will not miss them. IBM needs innovation exec’s, and you don’t see those folks exercising their options and exiting. WHY Because IBM is smart enough to know that’s what they spent 34 billion on.

Why would she stay. She doesn't fit the IBM model. Young, new blood, new life. They only want the old cronies in management. Red Hat execs make IBM execs look dumb and foolish. They are getting pushed out.

Why hasn't Red hat pushed IBM to acquire Cloudera? They work closely with Red hat and have almost $1 billion in revenue with new products...CDP

There will be more pressure and less innovation to red hat. We know how it ends up

There is no conspiracy theory or "something he knows we don't".
RH'ers that have millions, a sustainable amount or enough to do something cozy or fun instead of hard work will cash out. It doesn't matter who I worked for...... If I had millions I would not be doing something hard. I'd find some BS part time fun job.

Lockup/s from IBM purchases tend To run 1-2 years depending on your importance to the purchased company Exec’s get 2 years Lower level managers tend to get less time. IBM knows most of the exec’s will leave as the blue washing causes too much pain

Anybody know how long the lockout time is for Redhat employees to cash in stock from the merger, if you don’t know, do you know what is typical

“Once this spinoff happens, Red Hat becomes the growth engine of IBM,”
Yeah right lol

There is real money in those stock options. Just had to wait for the lockup to end. Ask Lance Crosby from softlayer how that worked out. He left the day the lockup ended. There is zero innovation at IBM, and thus no reason to remain. He like the Redhat folks see that, so it’s time to move on (after the cash out of course). If AK truly wants Redhat to grow faster, wouldn’t you be encouraging the folks who brought you to the dance to stay? NOPE we at IBM know better

Red Hat is under pressure to perform. Pay attention to the last 2 Arvind office hours - first thing he mentions when he discusses “priorities” is Red Hat revenue must increase. Interesting that you see more Red Hat executives depart than individual contributors when revenue is challenged.

JW has a net worth of $70M+. I bet he's looking at retirement or moving on. Could you imagine working at IBM if you had 70 mil in the bank?

May be Bluewashing has started...?

@fst - agree 100%. The question I struggle with is why more executives with millions in the bank don't retire. And this is not just an IBM criticism, this applies to any large company.

Being a mid- to high-level exec but not the CEO seems like a miserable, stressful existence where you do nothing concrete and constantly fight for position and succession. If you're not learning anything, you're not doing something worthwhile for the world, and you don't need the money, why show up for another day of status meetings, conference calls, people problems, office politics, spreadsheets and powerpoints?

I guess you can throw that on the bonfire of reasons I have not climbed the managerial greasy pole.

Or she’s legitimately at a stage in her personal life where she’s tired of working and has enough money to not work anymore. And whatever clause that she had that required her to stick around for has ended. If I had millions in the bank - I’d jump for retirement too regardless of the company I was at.

Not everything is a conspiracy.

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Another top Red Hat exec heads to retirement

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