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In the wake of a disappointing earnings report, longtime Sun Microsystems CEO Scott McNealy resigned on Monday. Taking his place: Jonathan Schwartz, Sun's president and COO, effective immediately.
McNealy, 51, will stay on as chairman and "full-time employee," whose new role will be to "focus his efforts on Sun's government and academic relationships globally, as well as expand his role with key strategic partner relationships." He also will become the chairman of Sun Federal, which focuses exclusively on U.S. government business.
In a conference call Monday afternoon, McNealy called it a "big day for the company and a big day for me." He said Schwartz "has done an awesome job at everything he's done" for Sun.
"He's never blinked in all the time I've known him, and he's executed," McNealy said, adding that the company's product line "has never been stronger."
"I wasn't going to hand it over post-bubble when the thing was deteriorating, but the time is right to go do it now," he said, pointing to market indicators that put Sun in a position for strong future growth, such as $4.4 billion of cash in the bank and solutions in a variety of emerging markets. "The timing fit me to a tee, and it was my call."
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