Computer business Dell recently gave the company back to founder Michael Dell.  Dell will replace Kevin Rollins in light of a year of problems for the computer business.  This announcement came Wednesday and included the resignation of Rollins as CEO and director.  Dell will take on all Rollins’ previous duties immediately.

Wall Street analysts predicted this change for the computer business a year ago.  Dell stated it was a board decision made earlier in the week and was based on Michael Dell’s past track record for sustaining Dell in the past.  At the same time as this change was announced, the computer business declared it was expecting a low fourth-quarter revenue and low earnings, despite strong finishes by rivals.

While Rollins will not receive any pension plan or severance, he is getting stock options worth $30 million, earned while he was acting as CEO for Dell.  According to a spokesperson for the computer business, Rollins and the Dell company have not come to a final agreement.  

Michael Dell and Rollins shared an office in Round Rock, Texas, even after Rollins took over Dell’s position in 2004.  Rollins joined the computer business 10 years ago and acted as Dell’s right-hand man after having been a consultant for three years prior.

Problems for the computer business started during Rollins’ tenure, and questions were often asked about how long his position would last.  Slowing revenue and accounting issues that  brought on federal investigations were just two of the many problems faced by Dell while Rollins was in charge, and the change in leadership can be directly attributed to these problems.

Michael Dell founded the computer business in 1984 and has been integral to its operations during its entire life.  He is very excited to take on the leadership role again, but refused to comment on his relationship with Rollins.

Blogged By:  Joshua Feinberg