Paul Folino, who’s grown Costa Mesa-based Emulex Corp. into a dominant supplier of electronics for data storage networks, is handing over the chief executive’s title to become executive chairman.
Folino, chief executive since 1993, is being succeeded by James M. McCluney, who up to now has served as president and chief operating officer. McCluney also joins Emulex’s board.
McCluney came to Emulex in 2003 from Bothell, Wash.-based Vixel Corp., which Emulex bought for $310 million in 2003.
Folino said he’s worked closely with McCluney on a transition for the past three years. As executive chairman, Folino said he plans to work with McCluney and on integrating two recent acquisitions, including last week’s deal to buy Roseville-based Sierra Logic Inc. for about $180 million.
Arguably the county’s most prominent chief executive, Folino is a major supporter of the arts, education and politics as chairman of the moderate Republican group New Majority. He’s a close friend and adviser to Gov. Arnold Schwarzenegger.
In 1994, Folino oversaw the spinoff of Aliso Viejo-based QLogic Corp., creating a competitor to Emulex with a recent market value of $3 billion.
Robert W. Baird & Co. analyst Daniel J. Renouard said he wasn’t surprised by the move in a research note.
“We view this transition as largely a non-issue operationally and expect no disruption internally or externally,” he said.
Emulex’s shares were down 2.3% Wednesday with a market value of $1.4 billion.
