Check Point's Gil Shwed reflects on stepping down: “I may regret not doing it earlier”
The Check Point founder discussed leadership, legacy, and the choice of Nadav Zafrir as CEO at Calcalist's Growth Conference.
“I had in the past several candidates to replace me. I may regret not stepping aside earlier and letting one of them lead,” said Check Point founder and executive chairman Gil Shwed regarding his decision to step down as CEO and hand the reins to Nadav Zafrir. Shwed made the remarks in a conversation with Calcalist editor-in-chief Galit Hemi, during Calcalist's Growth Conference held in collaboration with Mizrahi-Tefahot Bank.
After more than 30 years as the longest-serving CEO on the Nasdaq, you decided to step down. Some headlines called it a long-overdue move. Isn’t that a bit insulting?
“Check Point is like my family and my child. I’m proud of what we’ve built, and we deserve criticism, precisely because Check Point is a successful company. I demand more from myself and from the company. We’ve come a long way, and I hope Check Point reaches even greater heights.”
You’ve had a new CEO for six months. Some companies promote internally; others hire externally. You chose someone from outside. What message does that send?
“I had several internal candidates and may regret not stepping aside earlier and letting one of them lead. Still, I’m happy with the choice. Nadav Zafrir is an amazing person, it’s hard not to be taken by him. Beyond the charisma, there are many layers I’m getting to know. We've worked closely for nearly a year, and it's been a pleasure. Our goal was to bring in someone new who could lead real change. More of the same isn’t enough, we all deserve innovation.”
You recently announced a plan to recruit 500 R&D employees in Israel, expanding your local R&D headcount by 25%, along with a NIS 500 million real estate investment. This runs counter to the trend of Israeli tech moving abroad. Where does that optimism come from?
“If you don’t have optimism, you don’t belong in business. I hope in our case it’s supported by data. We believe in the cyber market, in Check Point’s ability to grow, and in the talent we find in Israel. This is our home, with all its challenges, and there are excellent people here.”
Israel has been at war for 612 days. Meanwhile, Trump is signing tech deals in Riyadh. Is Israel’s global tech standing at risk?
“I try not to give political answers, but it’s clear that peace, a stable economy, and a strong legal system support business and tech. I’ve never believed politics drives our tech sector. I want customers to buy our products because they’re the best, not because they’re Israeli. That’s what matters to me.”
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Still, the war must create difficulties.
“There are signs of strain, but so far it hasn’t impacted our business. The entire tech sector is functioning remarkably well. Many employees are in the reserves but continue to work and contribute to the economy. I salute them.”
As a public figure, don’t you think you should speak out more on government moves that may threaten democracy and the economy?
“I deliberately avoid political commentary. Others are already speaking, on both sides. I’m not sure my voice would make the conversation smarter or more productive.”
Some blame high-tech workers for protesting judicial reform. Your thoughts?
“Democracy includes the right to protest. You can’t deny that to anyone, especially not high-tech workers. Our industry is built by people who studied and worked hard, not those who inherited wealth. It’s the opposite of entitlement.”
Check Point still trails CrowdStrike and Palo Alto Networks by tens of billions in valuation. Where will the company be in five or ten years?
“I wish I knew. I never focused on stock price or cash reserves. The stock is at an all-time high, I have no apologies. Check Point is one of the largest cybersecurity firms in the world. Will we close the gap? I hope our new management leads us higher. Our recent product and financial performance has been excellent.”
Will Check Point close the gap?
“I’ll quote our new CEO: if he didn’t believe it was possible, he wouldn’t have taken the job.”
Now that you're an executive chairman with more time, will you make private investments elsewhere?
“I try not to invest in things I don’t understand, or in Israel, the local market is crowded and I don’t want to compete with friends. Success in high-tech doesn’t automatically translate to other fields; they require years of study. For now, I’m not diving into other sectors. I’m enjoying the freedom, the fresh air, and the chance to choose what I want to do tomorrow.”
