Stephen J. Luczo
Encyclopedia
Stephen J. Luczo is the Chairman of the Board of Directors, President and CEO of Seagate Technology. In January 2009, Luczo, Seagate's Chairman, was appointed president and chief executive officer, returning him to the president and CEO role he held at Seagate from 1998 to 2004. [1] He has also served on the Corporate Boards of Directors of Cobalt Systems (acquired by Sun Microsystems in 1997), Crystal Decisions, Inc. (formerly Seagate Software [2], acquired by Business Objects in 2003), Dragon Systems, Inc., E2open[3][4], Gadzoox Microsystems, Inc. (renamed Gadzoox Networks, Inc. in 1997, and acquired by Broadcom in 2003), and VMWare (acquired by EMC in 2003). Mr. Luczo also served on the Advisory Boards of the New York Stock Exchangs (NYSE) and the Stanford Graduate School of Business.
and Psychology
from Stanford University
, and an MBA from the Stanford Graduate School of Business
. He was the Senior Managing Director of the Global Technology Group of Bear Stearns & Co. Inc., an investment banking firm, from February 1992 to October 1993. Prior to joining Bear, Stearns & Co., he was an investment banker at Salomon Brothers, Inc. from 1984-1992. While at Salomon Brothers
, Luczo led the investment banking team for Seagate when it acquired the Imprimis Disk Drive Unit from Control Data. Subsequent to his advisory work for Seagate, Luczo advised Control Data in the formation of Ceridian and Control Data Systems.
He joined Seagate in October 1993 as Senior Vice President of Corporate Development. In March 1995, he was appointed Executive Vice President of Corporate Development and Chief Operating Officer of Seagate Software Holdings. In 1996, Luczo led the Seagate acquisition of Conner Peripherals, creating the world’s largest disk drive manufacturer and completed the company’s strategy of vertical integration
and ownership of key disk drive components. In September 1997, he was promoted to the position of President and Chief Operating Officer of Seagate Technology, Inc. In 1997, Seagate experienced a downturn, along with the rest of the industry, and launched a restructuring effort. In July 1998, the CEO Alan Shugart was asked to resign and Luczo became the new Chief Executive Officer, joining the Board of Directors.
Historically, Seagate's design centers had been organized around function, with one product line manager in charge of tracking the progress of all programs. In 1998, Luczo and then CTO Tom Porter characterized the organizational redesign of design centers into core teams organized around individual projects, to meet the corporate objective of faster time to market. As the CEO, Luczo decided to increase investment in technology, and to implement a highly automated platform strategy for manufacturing. Between 1997 and 2004, Seagate reduced its headcount from approximately 111,000 to approximately 50,000, rationalized its factory footprint from 24 factories to 11 factories and reduced design centers form seven to three. During this period, Seagate output increased from approximately 9 million drives per quarter to approximately 20 million drives per quarter.
In May 1999, Seagate sold its Network & Storage Management Group (NSMG) to VERITAS Software in return for 155 million shares of VERITAS's stock. With this transaction, Seagate became the largest shareholder in VERITAS, with an ownership stake of more than 40%. However, the Seagate Board of Directors felt that the market was under pricing Seagate's stock, as was clear from a 200% increase in VERITAS stock versus only a 25% increase in Seagate's stock.
Luczo led the management buyout of Seagate in 2000. After two failed attempts to increase Seagate's stock price and unlock its value from VERITAS, Seagate's Board of Directors authorized Luczo to seek advice from Morgan Stanley in October 1999. In early November 1999, Luczo met with representatives of Silver Lake Partners
and Texas Pacific Group
to discuss a major restructuring of Seagate. On November 22, 2000, Seagate management, VERITAS Software, and an investor group led by Silver Lake closed a complex deal taking Seagate private in what was at the time the largest buyout ever of a technology company. Both the Stanford Graduate School of Business and the Harvard Business School have written multiple case studies on the Seagate buyout and turnaround. In addition, several leading management books have cited the Seagate turnaround in the contents.
Luczo became the Chairman of the Board of Directors of Seagate on June 19, 2002. In 2003, he accepted an invitation from the New York Stock Exchange to join its Listed Companies Advisory Committee. When the company separated the roles of chairman and CEO in 2004, Luczo resigned as the Seagate CEO on July 3, 2004, but retained his position as Chairman of the Board of Directors. In January 2009, Luczo was again named CEO, replacing Bill Watkins.
Through Balance Vector Productions and Verso Entertainment, Luczo and NBA star Baron Davis produced the film Crips and Bloods: Made in America, which was directed by Stacy Peralta and premiered at the 2007 Sundance Film Festival. Luczo’s Balance Vector Productions also produced the syndicated TV show Coolfuel Road Trip.
Balance Vector Sports includes ownership interest in the Boston Celtics
, the Vancouver Whitecaps FC (with Greg Kerfoot, Steve Nash and Jeff Mallet) and IndyCar Series
team Luczo Dragon Racing. In addition, Balance Vector Sports has been the primary sponsor to the world champion adventure racing team from New Zealand, three-time kite surfing world champion Cindy Mosey, two-time world free skiing champion Kit DesLauriers, and big wave champion surfer Garrett McNamara.
Luczo is married to Agatha Relota Luczo, a top fashion model who has been photographed for Vogue, W Magazine, Chanel, Yves Saint Laurent, Hermes and Nina Ricci and has been photographed by Patrick Demarchelier, Steven KJein, Jeurgen Teller, David LaChapelle and Scavullo.
Luczo is now the father of two children, Rosalia Antonia Luczo and George Thomas Luczo.
Business career
Steve Luczo holds a B.A., EconomicsEconomics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
and Psychology
Psychology
Psychology is the study of the mind and behavior. Its immediate goal is to understand individuals and groups by both establishing general principles and researching specific cases. For many, the ultimate goal of psychology is to benefit society...
from Stanford University
Stanford University
The Leland Stanford Junior University, commonly referred to as Stanford University or Stanford, is a private research university on an campus located near Palo Alto, California. It is situated in the northwestern Santa Clara Valley on the San Francisco Peninsula, approximately northwest of San...
, and an MBA from the Stanford Graduate School of Business
Stanford Graduate School of Business
The Stanford Graduate School of Business is one of the professional schools of Stanford University, in Stanford, California and is broadly regarded as one of the best business schools in the world.The Stanford GSB offers a general management Master of Business Administration degree, the Sloan...
. He was the Senior Managing Director of the Global Technology Group of Bear Stearns & Co. Inc., an investment banking firm, from February 1992 to October 1993. Prior to joining Bear, Stearns & Co., he was an investment banker at Salomon Brothers, Inc. from 1984-1992. While at Salomon Brothers
Salomon Brothers
Salomon Brothers was a bulge bracket, Wall Street investment bank. Founded in 1910 by three brothers along with a clerk named Ben Levy, it remained a partnership until the early 1980s, when it was acquired by the commodity trading firm Phibro Corporation and then became Salomon Inc. Eventually...
, Luczo led the investment banking team for Seagate when it acquired the Imprimis Disk Drive Unit from Control Data. Subsequent to his advisory work for Seagate, Luczo advised Control Data in the formation of Ceridian and Control Data Systems.
He joined Seagate in October 1993 as Senior Vice President of Corporate Development. In March 1995, he was appointed Executive Vice President of Corporate Development and Chief Operating Officer of Seagate Software Holdings. In 1996, Luczo led the Seagate acquisition of Conner Peripherals, creating the world’s largest disk drive manufacturer and completed the company’s strategy of vertical integration
Vertical integration
In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...
and ownership of key disk drive components. In September 1997, he was promoted to the position of President and Chief Operating Officer of Seagate Technology, Inc. In 1997, Seagate experienced a downturn, along with the rest of the industry, and launched a restructuring effort. In July 1998, the CEO Alan Shugart was asked to resign and Luczo became the new Chief Executive Officer, joining the Board of Directors.
Historically, Seagate's design centers had been organized around function, with one product line manager in charge of tracking the progress of all programs. In 1998, Luczo and then CTO Tom Porter characterized the organizational redesign of design centers into core teams organized around individual projects, to meet the corporate objective of faster time to market. As the CEO, Luczo decided to increase investment in technology, and to implement a highly automated platform strategy for manufacturing. Between 1997 and 2004, Seagate reduced its headcount from approximately 111,000 to approximately 50,000, rationalized its factory footprint from 24 factories to 11 factories and reduced design centers form seven to three. During this period, Seagate output increased from approximately 9 million drives per quarter to approximately 20 million drives per quarter.
In May 1999, Seagate sold its Network & Storage Management Group (NSMG) to VERITAS Software in return for 155 million shares of VERITAS's stock. With this transaction, Seagate became the largest shareholder in VERITAS, with an ownership stake of more than 40%. However, the Seagate Board of Directors felt that the market was under pricing Seagate's stock, as was clear from a 200% increase in VERITAS stock versus only a 25% increase in Seagate's stock.
Luczo led the management buyout of Seagate in 2000. After two failed attempts to increase Seagate's stock price and unlock its value from VERITAS, Seagate's Board of Directors authorized Luczo to seek advice from Morgan Stanley in October 1999. In early November 1999, Luczo met with representatives of Silver Lake Partners
Silver Lake Partners
Silver Lake is a US-based private equity firm focused on leveraged buyout and growth capital investments in technology, technology-enabled and related industries...
and Texas Pacific Group
Texas Pacific Group
TPG Capital is one of the largest private equity investment firms globally, focused on leveraged buyout, growth capital and leveraged recapitalization investments in distressed companies and turnaround situations. TPG also manages investment funds specializing in growth capital, venture capital,...
to discuss a major restructuring of Seagate. On November 22, 2000, Seagate management, VERITAS Software, and an investor group led by Silver Lake closed a complex deal taking Seagate private in what was at the time the largest buyout ever of a technology company. Both the Stanford Graduate School of Business and the Harvard Business School have written multiple case studies on the Seagate buyout and turnaround. In addition, several leading management books have cited the Seagate turnaround in the contents.
Luczo became the Chairman of the Board of Directors of Seagate on June 19, 2002. In 2003, he accepted an invitation from the New York Stock Exchange to join its Listed Companies Advisory Committee. When the company separated the roles of chairman and CEO in 2004, Luczo resigned as the Seagate CEO on July 3, 2004, but retained his position as Chairman of the Board of Directors. In January 2009, Luczo was again named CEO, replacing Bill Watkins.
Balance Vector
In 2004, Luczo founded Balance Vector, Inc. Balance Vector is a privately held company involved in technology and environmental investments (Trade Wins, Inc.), real estate development (Hobo Joe Land and Cattle Company), music (Talking House Productions) and film production (Balance Vector Productions) and sports ownership, with the majority of profits directed to numerous charitable causes.Through Balance Vector Productions and Verso Entertainment, Luczo and NBA star Baron Davis produced the film Crips and Bloods: Made in America, which was directed by Stacy Peralta and premiered at the 2007 Sundance Film Festival. Luczo’s Balance Vector Productions also produced the syndicated TV show Coolfuel Road Trip.
Balance Vector Sports includes ownership interest in the Boston Celtics
Boston Celtics
The Boston Celtics are a National Basketball Association team based in Boston, Massachusetts. They play in the Atlantic Division of the Eastern Conference. Founded in 1946, the team is currently owned by Boston Basketball Partners LLC. The Celtics play their home games at the TD Garden, which...
, the Vancouver Whitecaps FC (with Greg Kerfoot, Steve Nash and Jeff Mallet) and IndyCar Series
IndyCar Series
The IZOD IndyCar Series is the premier level of American open wheel racing. The current championship, founded by Indianapolis Motor Speedway owner Tony George, began in 1996 as a competitor to CART known as the Indy Racing League . Citing CART's increasing reliance on expensive machinery and...
team Luczo Dragon Racing. In addition, Balance Vector Sports has been the primary sponsor to the world champion adventure racing team from New Zealand, three-time kite surfing world champion Cindy Mosey, two-time world free skiing champion Kit DesLauriers, and big wave champion surfer Garrett McNamara.
Personal life
Luczo is an avid snowboarder and surfer. He devotes much of his free time to charitable activities both through Balance Vector and through direct support of charities focused on at-risk children or environmental causes.Luczo is married to Agatha Relota Luczo, a top fashion model who has been photographed for Vogue, W Magazine, Chanel, Yves Saint Laurent, Hermes and Nina Ricci and has been photographed by Patrick Demarchelier, Steven KJein, Jeurgen Teller, David LaChapelle and Scavullo.
Luczo is now the father of two children, Rosalia Antonia Luczo and George Thomas Luczo.
External links
- Giving Wall Street The Cold Shoulder
- Stephen Luczo Profile at Forbes.com.