Acer CEO Founder Replaces President, Without Pay

Google executive chairman Eric Schmidt (R) and Stan Shih (L), Acer founder, attend a forum in Taipei, Nov. 9, 2011. Patrick Lin/Getty Images

Acer founder Stan Shih is taking the reins of the Taiwanese company without pay as the newly appointed CEO stepped down abruptly on Thursday.

Acer president Jim Wong had been appointed CEO just two weeks ago after CEO J.T. Wang’s resignation.

Wong cited the company’s poor financial results and said he stepped down “in light of the company’s recent performance,” according to a company press release.

“Due to the situation that now faces Acer and my personal social responsibilities, I must stand up and take the reigns without salary,” Shih stated.

Acer Inc.’s board of directors got rid of the position of CEO and broke up the duties between the chairman and president’s roles, which Shih will now take on. 

Acer had reported a $3.13 billion loss in the third quarter, slightly better than the previous quarter but down 11.8 percent from the previous year. The company announced plans to restructure, cancel certain products, and lay off 7 percent of staff earlier this month. The company estimates $100 million in annual savings with the layoffs.

Acer is the world’s fourth largest PC vendor and has been reporting poor earnings due to declining shipments. Tablets and smartphone shipments have been increasing worldwide as PCs have been decreasing. Shih was appointed to lead an advisory committee earlier this month to reexamine the company’s strategy. 

Recently, Acer announced plans to launch a marketing campaign to highlight the innovative factors of their PCs, such as touchscreen technology. 

The PC industry has been on a “race to the bottom” in terms of pricing, said IHS analyst Wayne Lam. Michael Dell, for example, took Dell Inc. private this fall. 

Analysts say Acer will need to get into new markets to survive, diversifying away from selling to consumers and focusing more on enterprise solutions.