Here is a bit of news in our rapidly maturing market. I don’t know that it necessarily means anything and I don’t know any of the people, but I do find it interesting that no long term PTC executives were promoted. That job goes to the CEO of a recently acquired company. I guess we can try to read the tea leaves about what that means for the future direction of the company—and what’s important. In a maturing market, the new CEO has a background in finance and most recently running the service operations.
PTC today announced that Neil Barua, President of PTC’s Service Lifecycle Management business, will succeed James Heppelmann as Chief Executive Officer of PTC at the time of the Company’s annual shareholder meeting in February 2024. At that time, Mr. Heppelmann will step down as CEO and retire, concluding a distinguished 26 years of service at the Company, including 13 years as CEO. Effective immediately, Mr. Heppelmann is appointed Chairman of the Board, and Mr. Barua is appointed CEO-elect and to PTC’s Board of Directors.
The CEO transition is the culmination of the Board’s comprehensive succession planning process to ensure leadership continuity and to position PTC for continued growth. Mr. Heppelmann and Mr. Barua will work closely together through February 2024 to ensure an orderly transition of responsibilities.
Here are the obligatory statements from the major players.
Bob Schechter, who has served as Chairman of PTC’s Board of Directors for the last eight years, said, “Neil is the ideal person to lead PTC in its next chapter. He’s a seasoned technology executive with a proven track record of growing software businesses and supporting industrial companies with their digital transformation journeys. He combines this with a strong financial acumen, a customer-first mindset, and a leadership style that empowers employees. The Board and I have great confidence that PTC has a bright future ahead with Neil serving as CEO alongside the rest of the Company’s experienced leadership team.”
Mr. Schechter continued, “Throughout his tenure as CEO, Jim has demonstrated unwavering commitment to PTC, and his positive impact on the Company cannot be overstated. His visionary leadership has helped transform PTC into the category leader in the product lifecycle management market and has driven record financial performance for shareholders. The Board sincerely thanks Jim for all his contributions to date, and we look forward to our continued work together.”
Mr. Heppelmann said, “I’m immensely proud of all that PTC has accomplished during my 26 years with the Company, including these last 13 as CEO. PTC has become a premier digital transformation partner to our customers, with the most differentiated software portfolio in our industry. I’m confident that PTC has never been in a better position to deliver value to our customers and our shareholders as we begin this next chapter. Having worked closely with Neil since the ServiceMax acquisition, I can attest first-hand to his focus on our customers’ and employees’ success, his understanding of PTC’s market opportunities for the entire software portfolio, and his principles of financial and operational discipline. I’m confident that Neil, along with our proven executive leadership team, will keep PTC on a path of sustained growth and success.”
Mr. Barua said, “It’s an honor to be named the next CEO of PTC, and I greatly appreciate the confidence the Board has placed in me. PTC is a terrific company with great customers, talented employees, and the strongest product portfolio in our industry. The Company has been performing exceptionally well, and we’ll build on this success as we enter our next chapter. I look forward to working with Jim and our executive team during this transition and deepening my relationships with our customers, employees, partners, and shareholders.”
Mr. Barua has an extensive background in the technology industry and a proven track record of growing businesses. Mr. Barua is the former Chief Executive Officer of ServiceMax, a recognized leader in cloud-native, product-centric field service management software, which PTC acquired in January 2023. Following the acquisition, Mr. Barua led PTC’s Service Lifecycle Management business until his appointment as CEO-elect. Previously, Mr. Barua served as an operating partner at Silver Lake, a global leader in technology investing. Earlier in his career, Mr. Barua was CEO of IPC Systems, a global provider of specialized technology solutions for the financial services community. Mr. Barua holds a B.S. in Finance & Economics from the NYU Stern School of Business.
In connection with the announced leadership changes, Janice Chaffin, Chair of the Corporate Governance Committee of the Board, will serve as Lead Independent Director. Bob Schechter, previously Chairman of the Board, remains on the Board as an Independent Director.