Is Michael Dell about to be ousted?

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Dell sticking with its man

Many at Dell believe so. There have been numerous statements of confidence in Mr Dell, even in light of the problems.

In response to the what some had labelled a shareholder revolt, Dell sent IT PRO this clear statement from David Frink, from the firm’s corporate affairs division: “The Dell board of directors has expressed its unanimous confidence in Michael Dell's leadership of the company, and a majority of Dell shareholders did as well.”

After Dell was told to pay out $100 million in a settlement over the five-year investigation into reporting payments made between the company and Intel, presiding director of the Dell board Sam Nunn came out and stressed how the founder still had strong support.

“Dell’s board reaffirms its unanimous support for Michael Dell’s continued leadership, and the management team in its ongoing commitment to transparent accounting, integrity in financial reporting and strong corporate governance,” Nunn said.

Despite these mistakes, it should not be forgotten how far Mr Dell has taken his company over the years and, indeed, in recent times.

Just this week the company announced the $1.15 billion acquisition of virtualised storage solution provider 3PAR, building on Dell’s impressive storage portfolio, which also includes EqualLogic services bought in 2007.

Do such acquisitions not suggest a forward-thinking mentality on the part of Mr Dell?

Earlier in the year Dell reported some strong revenue growth and said it is expecting solid growth for the year ahead. Is this not also the sign of a well-run company?

Surely too few errors have been made and too many successes achieved to warrant a sacking.

It would be more than a shock to see Mr Dell actually ousted from his own firm and, as yet, it does not look likely. Not when much of the support he has received is warranted.

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