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The qualification to serve on the Board of Broadcom includes the responsibility of Tan as CEO, his extensive career in technology in general and semiconductor industry in particular and his extensive knowledge has enabled him to develop the business over the course of his career. Hock Tan has used his MIT scholarship along with his academic success in the United States and has rise from the modest Malaysian roots and has built a global computer-chip empire, Broadcom. Tan has built a reputation as a cost-cutting tough guy and who considers performance for the rewards and who is always interested in being as the employer of the year. Tan appears to come from the humble beginnings.

Born and grown up in a Malaysian family where parents cannot afford sending him to college, Tan has worked hard and achieved engineering from MIT and MBA from Harvard and has climbed the corporate ladder of the consumer-products companies and also tech companies. The computer-chip maker has made the largest acquisition in the history of technology and is thus Tan is considered as the chip industry’s arch consolidator. Tan was only 18 years, when he won the scholarship for his studies at Massachusetts Institute of Technology and he took a bold decision by taking the first step in becoming one of the top technology executives in United States.

Early career ...

Tan was associated with Malaysian Hume Industries as managing director for the period 1983 to 1988. Later Tan moved on to Pacven Investment for the period 1988 to 1992. Then he was associated with some of the companies like General Motors and PepsiCo and was responsible for several financial positions. Then Tan became the Vice President for Finance of Commodore International Ltd. Tan also served as the CEO for Integrated Circuit Systems Inc. As this company was completely taken over by Integrated Device Technology Inc, he served as the chairman of the latter. It was in 2015 that the company was merged by Tan with Broadcom Corporation which is an acquisition and thus Broadcom Ltd was created. Tan Hock serves as the CEO of Broadcom Inc.

Hock E Tan is the President, Chief Executive Officer and Director for Broadcom since 2006.From 2005 to 2008, Tan was associated with Integrated Device Technology and served as Chairman of the board. From 1999 to 2005, Tan served as president and CEO of the Integrated Circuit Systems. From 1992 to 1994, Tan served as the Vice President of Finance for Commodore International.

Tan’s style of leadership...

Tan has been the corporate raider of sorts in the bid for Qualcomm, which was after the acquisitions in the past five years and which allowed to cobble together the complete computer-chip empire. Tan aggressively sloughs off all the divisions of the newly acquired companies in the instances when they do not fit into the narrow pursuit of the dominance of the chip. His style of management runs towards performance-based rewards and who has hardly any interest in being the employer of the year. The aggressive history of Tan has also become a point of gallows humor around the Silicon Valley, under his corporate umbrella firm.

Tan has been working in the semiconductor industry for more than 25 years and Tan is known for his great cost-cutting techniques. The relation of Tan with Donald Trump has raised curiosity among the businessmen and technology enthusiasts. In order to meet the needs of the global customers and drive towards improving the shareholder value, Tan strategy is to go for broader product diversification and greater scale of operations. Tan views Broadcom as the high-performance chassis into which Tan can comfortably bolt the purchases of the established products which have the leading technology and highest market share, by emphasizing more on the appeal to the current customer base. Tan is a relentless cost-cutter, who spends more on maintaining the lead and who tries to avoid the unclear payoff investments. The attitude of Tan towards innovation worries the competitors that depend on technology for providing an edge. The strategies of Tan would prove unsustainable in the long run. Tan acquires those companies which offer opportunities for driving growth and profit.

It is expected that if the returns on the stock exceeds 90% of the members by the end of 2012, and if positive returns are realized, then Tan will receive a maximum of 4.5 times of his shares. It was possible for Tan to built Broadcom as the world’s largest chipmakers by following some of the strategies like entertaining into string of acquisitions, by cutting down the costs to boost up the profitability. The only long term vision and ambition for Tan is all about putting together a good portfolio of product franchise for creating value for the customers, shareholders and employees.

His strategic decisions...

Tan has decided to move Broadcom back to US, and this will facilitate in bringing US$20 billion of annual revenue and hence the company is avoided from cumbersome federal review process over the earlier announced deal of the merger. Tan has always ensured that redomiciliation does not have any impact on the day-to-day business, operations and also on the levels of employee staffing and on the employee responsibilities and even on investments. Tan has transformed the move into a good business and strategic sense. This decision of Tan, made Mr. Trump to praise him as a highly respected man, a great executive as the job done by him is incredible as it commits massive amounts of jobs to Americans.

When Tan has made the announcement of moving the office headquarters from Singapore to United States, the Malaysian-born boss of semiconductor giant Broadcom was given a warm welcome and reception by the president Donald Trump, into the Oval office of the White House. This decision of Tan, he says is his giving back to the country which Tan has received so much for what he is currently.

As CEO, Tan has built Broadcom as a portfolio of smartphone and networking chips by more than $50 billion shopping spree for more than 10 companies by many divestments. Tan has muffled the innovation by cutting the products which were never used by the established leaders and by concentrating on cost-conscious product development unless and until the customer request for a new capability and would agree to pay for it. Tan opines that it is always great to innovate but its greatness can be felt when we get the return on the innovation and investment made.

Leadership success...

Tan has transformed Broadcom into a Fortune 500 company which provides employment to more than 15,000 workers and half of which is in United States. By building the business strength and by continuously focusing on the technology innovation, Tan is certain about quick realization of the advantages of the transactions for all the stakeholders. This will enable Tan in benefitting the Broadcom employees by the benefits from the substantial opportunities for the development and growth which constitute a part of the much bigger company. Tan has developed the reputation for Broadcom in such a way that any responsible board would consider as a top priority to negotiate a merger agreement with Broadcom.

By taking up the series of bold acquisitions, which are backed up by the fiscal discipline and tightly controlled investments, Tan, the chip industry’s most visible deal maker has been helping in driving the growth of the profits at Broadcom, and thus piling up the cash for the company and paying out the dividends at an exceptional pace. This approach of Tan has brought kudos from Wall Street. Tan has boosted up the revenue by 33%, profit by 39% and the free cash flow by 58%. The per-share dividend for Broadcom has been doubled for the year 2017 and was increased to 72% for the year 2018. Tan owns only 0.026 % equity stake in Broadcom, which itself is worth of $28.1 million. He also possesses the right to exercise options for purchase of more than 2.4 million shares. For the year 2017, Tan was the highest earning CEO.

Tan as a CEO made Broadcom as a juggernaut in the chip space, which pushed the market share and increased it to 30% from 4% within a span of one year. Tan when was associated with Avago Technologies Limited, the largest compensation package he received for the year 2013 was $31.9 million. As the head of the semiconductor company Broadcom, Tan has earned US$103.2 million for the year 2017, which is 2039 times more than an average US worker.

Personal life...

Tan has completed his graduation from Massachusetts Institute of Technology and completed his MBA from Harvard University. Tan is married to Wall Street Investment Banker Lisa Yang, and they have three children. Two of his children have autism and therefore millions of donations from his family go for autism research. $30 million of Tan will go for spurring multidisciplinary autism research at MIT, for identifying the cause and the conditions on discovering the effective treatments.

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