Kenneth L. Schroeder
Encyclopedia
Kenneth L. Schroeder (b.1945) is an American technology-focused corporate executive. Schroeder served as CEO of KLA-Tencor, a major supplier of process control and yield management
solutions for the semiconductor
and related microelectronics
industries.
Schroeder is most recognized for changing KLA-Tencor from a small company with three product lines to the professionally managed, broad product line company it is today. During the period from 1991–2005, when Schroeder was first president and COO and then CEO, the company’s market capitalization
increased fifty times from $180 million to $10 billion. During his tenure as CEO (1999–2005), the company’s revenue doubled from $1 billion to $2.1 billion and retained earnings tripled from $700 million to $2.1 billion. In 2002, Chief Executive Magazine
ranked Schroeder one of its top 100 CEOs. In 2003, Schroeder was included in the CEO 100 list in Who's Who in Semiconductors. And in 2006, Institutional Investor named Schroeder the number one CEO in the semiconductor equipment industry.
In 2007, the United States Securities and Exchange Commission
(SEC) alleged that Schroeder engaged in a scheme to illegally backdate options. In 2010, the Federal Court of the United States in San Jose ruled that Schroeder did not have knowledge of the back-dating scheme at KLA-Tencor.
degree in electrical engineering
in 1967. He received a Master’s degree in business from the Wharton School of the University of Pennsylvania
in 1969.
Following Wharton, Schroeder worked at Hewlett-Packard
as a manufacturing engineer, manufacturing engineering manager and operations manager of the computer division. In 1973, Schroeder moved to Spectra Physics, the world’s leading laser supplier, to serve as manufacturing manager and then general manager of the Construction Laser Division.
In 1991, he rejoined KLA as president and COO and served on the Board of Directors. In these roles, all divisions of the company reported to Schroeder.
In 1999, Schroeder became CEO on July 1. Under Schroeder's leadership, KLA-Tencor became nationally recognized. In 2002, Business Week ranked KLA-Tencor the sixth best performer in the S&P 500. In 2005, Forbes
rated KLA-Tencor as one of the 25 best-managed companies in the United States. Acknowledging Schroeder's management skill, KLA-Tencor was deemed "one of the best run semiconductor equipment companies in the world" in January 2005 by Electronic Business Magazine, which featured Mr. Schroeder on its cover.
Under Schroeder's leadership, KLA-Tencor also invested in training and mentoring its employees and was ranked as having the fifth best training program in the United States. Despite a severe, cyclical downturn that began in 2001, Schroeder maintained the profitability of KLA-Tencor during this difficult period. Schroeder grew KLA-Tencor's work force over 30% while he was CEO. When Schroeder retired from the CEO position the company had grown to over 5570 employees. KLA-Tencor was ranked by San Jose Magazine as “one of the best places to work” in Silicon Valley
.
Schroeder retired as CEO of KLA-Tencor and resigned from the Board of Directors
at the end of 2005. In a press release upon his retirement, Chairman Kenneth Levy said, “During Ken’s tenure as CEO, KLA-Tencor’s sales doubled from $1 billion to $2.1 billion and retained earnings tripled from $700 million to $2.1 billion.”
In connection with his retirement, Schroeder entered into an agreement with KLA-Tencor that he would be employed as a “part-time advisor” to insure a smooth transition of power and prevent him from working for a competing company.
In the wake of a stock option backdating probe by the SEC of KLA-Tencor, the company terminated its contract with Schroeder in 2006. In total, Schroeder worked for KLA-Tencor for 22 years.
probe of Schroeder. No indictment was filed due to a lack of evidence and the fact that Schroeder did not exercise or profit from the allegedly backdated option grants. Following the Wall Street Journal's 2006 expose of stock option backdating, the SEC alleged that Schroeder had engaged in this practice.
In 2009, Schroeder filed a lawsuit against KLA-Tencor in the California Superior Court asserting contract and tort
claims in connection with the termination of his employment and cancellation of certain equity awards in October 2006. KLA settled the suit by paying Schroeder $16.5 million.
In November 2010, the Federal District Court in San Jose
ruled against the SEC in a complaint the SEC brought against Schroeder. In his decision Judge James Ware stated: "Thus, it cannot be said that the SEC has demonstrated that Defendant possessed the degree of scienter sufficient to impose a five year director bar." The SEC had unsuccessfully sought to bar Schroeder from serving as a director or officer of a publicly traded company.
.
-The University of Wisconsin–Madison, awarded Schroeder a distinguished service citation.
-Schroeder is a member of Tau Beta Pi
, a national engineering honorary society.
, Photon Dynamics, Gasonics (now a division of (Novellus), Genus
, Semiconductor Equipment and Materials Institute (SEMI) and Semi-Sematech.
In 2003, Schroeder established an annual charitable giving program at KLA-Tencor whereby over seventy employees are recognized and awarded $1,000 to grant to their favorite charity.
.
Yield management
Revenue management is the process of understanding, anticipating and influencing consumer behavior in order to maximize yield or profits from a fixed, perishable resource...
solutions for the semiconductor
Semiconductor
A semiconductor is a material with electrical conductivity due to electron flow intermediate in magnitude between that of a conductor and an insulator. This means a conductivity roughly in the range of 103 to 10−8 siemens per centimeter...
and related microelectronics
Microelectronics
Microelectronics is a subfield of electronics. As the name suggests, microelectronics relates to the study and manufacture of very small electronic components. Usually, but not always, this means micrometre-scale or smaller,. These devices are made from semiconductors...
industries.
Schroeder is most recognized for changing KLA-Tencor from a small company with three product lines to the professionally managed, broad product line company it is today. During the period from 1991–2005, when Schroeder was first president and COO and then CEO, the company’s market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
increased fifty times from $180 million to $10 billion. During his tenure as CEO (1999–2005), the company’s revenue doubled from $1 billion to $2.1 billion and retained earnings tripled from $700 million to $2.1 billion. In 2002, Chief Executive Magazine
Chief Executive Magazine
Chief Executive is a business magazine published by Chief Executive Group, LLC.-Description:Chief Executive began publication in 1976 and JP Donlon is its Editor-in-Chief. The magazine is published six times a year and has a circulation of 42,000 copies is audited twice yearly by BPA Worldwide...
ranked Schroeder one of its top 100 CEOs. In 2003, Schroeder was included in the CEO 100 list in Who's Who in Semiconductors. And in 2006, Institutional Investor named Schroeder the number one CEO in the semiconductor equipment industry.
In 2007, the United States Securities and Exchange Commission
United States Securities and Exchange Commission
The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States...
(SEC) alleged that Schroeder engaged in a scheme to illegally backdate options. In 2010, the Federal Court of the United States in San Jose ruled that Schroeder did not have knowledge of the back-dating scheme at KLA-Tencor.
Early life and career
Schroeder graduated from University of Wisconsin, Madison with a Bachelor of ScienceBachelor of Science
A Bachelor of Science is an undergraduate academic degree awarded for completed courses that generally last three to five years .-Australia:In Australia, the BSc is a 3 year degree, offered from 1st year on...
degree in electrical engineering
Electrical engineering
Electrical engineering is a field of engineering that generally deals with the study and application of electricity, electronics and electromagnetism. The field first became an identifiable occupation in the late nineteenth century after commercialization of the electric telegraph and electrical...
in 1967. He received a Master’s degree in business from the Wharton School of the University of Pennsylvania
Wharton School of the University of Pennsylvania
The Wharton School is the business school of the University of Pennsylvania, an Ivy League university in Philadelphia, Pennsylvania. Wharton was the world’s first collegiate business school and the first business school in the United States...
in 1969.
Following Wharton, Schroeder worked at Hewlett-Packard
Hewlett-Packard
Hewlett-Packard Company or HP is an American multinational information technology corporation headquartered in Palo Alto, California, USA that provides products, technologies, softwares, solutions and services to consumers, small- and medium-sized businesses and large enterprises, including...
as a manufacturing engineer, manufacturing engineering manager and operations manager of the computer division. In 1973, Schroeder moved to Spectra Physics, the world’s leading laser supplier, to serve as manufacturing manager and then general manager of the Construction Laser Division.
KLA-Tencor
In 1979, Schroeder joined KLA Instruments (later known as KLA-Tencor) as employee 95. Schroeder started as the vice president of manufacturing and became senior vice-president in charge of two divisions (Wafer Inspection Systems and Reticle & Photomask Inspection). He worked at KLA until he left in 1987 to serve as CEO of Photon Dynamics.In 1991, he rejoined KLA as president and COO and served on the Board of Directors. In these roles, all divisions of the company reported to Schroeder.
In 1999, Schroeder became CEO on July 1. Under Schroeder's leadership, KLA-Tencor became nationally recognized. In 2002, Business Week ranked KLA-Tencor the sixth best performer in the S&P 500. In 2005, Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
rated KLA-Tencor as one of the 25 best-managed companies in the United States. Acknowledging Schroeder's management skill, KLA-Tencor was deemed "one of the best run semiconductor equipment companies in the world" in January 2005 by Electronic Business Magazine, which featured Mr. Schroeder on its cover.
Under Schroeder's leadership, KLA-Tencor also invested in training and mentoring its employees and was ranked as having the fifth best training program in the United States. Despite a severe, cyclical downturn that began in 2001, Schroeder maintained the profitability of KLA-Tencor during this difficult period. Schroeder grew KLA-Tencor's work force over 30% while he was CEO. When Schroeder retired from the CEO position the company had grown to over 5570 employees. KLA-Tencor was ranked by San Jose Magazine as “one of the best places to work” in Silicon Valley
Silicon Valley
Silicon Valley is a term which refers to the southern part of the San Francisco Bay Area in Northern California in the United States. The region is home to many of the world's largest technology corporations...
.
Schroeder retired as CEO of KLA-Tencor and resigned from the Board of Directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
at the end of 2005. In a press release upon his retirement, Chairman Kenneth Levy said, “During Ken’s tenure as CEO, KLA-Tencor’s sales doubled from $1 billion to $2.1 billion and retained earnings tripled from $700 million to $2.1 billion.”
In connection with his retirement, Schroeder entered into an agreement with KLA-Tencor that he would be employed as a “part-time advisor” to insure a smooth transition of power and prevent him from working for a competing company.
In the wake of a stock option backdating probe by the SEC of KLA-Tencor, the company terminated its contract with Schroeder in 2006. In total, Schroeder worked for KLA-Tencor for 22 years.
Legal
In 2008 the Northern District of California U.S. Attorney’s Office concluded their two-year stock options backdatingOptions backdating
Options backdating is the practice of issuing options contracts on a later date than that which the options have listed. While options backdating is not, in and of itself, an illegal practice, intentional backdating that coincides with low underlying stock prices and accounting reports that claim...
probe of Schroeder. No indictment was filed due to a lack of evidence and the fact that Schroeder did not exercise or profit from the allegedly backdated option grants. Following the Wall Street Journal's 2006 expose of stock option backdating, the SEC alleged that Schroeder had engaged in this practice.
In 2009, Schroeder filed a lawsuit against KLA-Tencor in the California Superior Court asserting contract and tort
Tort
A tort, in common law jurisdictions, is a wrong that involves a breach of a civil duty owed to someone else. It is differentiated from a crime, which involves a breach of a duty owed to society in general...
claims in connection with the termination of his employment and cancellation of certain equity awards in October 2006. KLA settled the suit by paying Schroeder $16.5 million.
In November 2010, the Federal District Court in San Jose
San José
San José, or San Jose, is the Spanish for Saint Joseph. It usually refers to one of two major cities. These are:*San José, Costa Rica, the capital of Costa Rica*San Jose, California, the tenth-most populous city in the United States...
ruled against the SEC in a complaint the SEC brought against Schroeder. In his decision Judge James Ware stated: "Thus, it cannot be said that the SEC has demonstrated that Defendant possessed the degree of scienter sufficient to impose a five year director bar." The SEC had unsuccessfully sought to bar Schroeder from serving as a director or officer of a publicly traded company.
Awards
-In 1994 and 1995, VLSI Research, a market analysis group, named Schroeder “Most Valuable Executive.” Later, in 2004, he was elected to VLSI Research’s Hall of FameHall of Fame
A hall of fame, wall of fame, walk of fame, walk of stars or avenue of stars is a type of attraction established for any field of endeavor to honor individuals of noteworthy achievement in that field...
.
-The University of Wisconsin–Madison, awarded Schroeder a distinguished service citation.
-Schroeder is a member of Tau Beta Pi
Tau Beta Pi
The Tau Beta Pi Association is the oldest engineering honor society in the United States and the second oldest collegiate honor society in America. It honors engineering students who have shown a history of academic achievement as well as a commitment to personal and professional integrity...
, a national engineering honorary society.
Board positions
Schroeder has been a member of the Board of Directors of KLA-Tencor, Adept TechnologyAdept Technology
Adept Technology, Inc. is a multinational corporation with headquarters in Pleasanton, California . The company focuses on industrial automation and robotics, including software and vision guidance. Adept has offices throughout the United States as well as in Dortmund, Germany, Paris, France, and...
, Photon Dynamics, Gasonics (now a division of (Novellus), Genus
Genus
In biology, a genus is a low-level taxonomic rank used in the biological classification of living and fossil organisms, which is an example of definition by genus and differentia...
, Semiconductor Equipment and Materials Institute (SEMI) and Semi-Sematech.
Philanthropy
Along with his wife, Fran Codispoti, Schroeder contributes financially to Avenidas, a community that celebrates and supports older adults, among other local charities.In 2003, Schroeder established an annual charitable giving program at KLA-Tencor whereby over seventy employees are recognized and awarded $1,000 to grant to their favorite charity.
Personal
Schroeder is married to Fran Codispoti. They have two grown children and live in Los Altos Hills, CaliforniaLos Altos Hills, California
Los Altos Hills is an incorporated town in Santa Clara County, California, United States. The population was 7,922 at the 2010 census. Located in Silicon Valley, Los Altos Hills is one of the wealthiest cities in the nation.-Strictly residential:...
.