Check Point Snags Team8’s Nadav Zafrir to Replace Gil Shwed – Source: www.databreachtoday.com

Leadership & Executive Communication
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Network Firewalls, Network Access Control
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Security Operations

Check Point’s 2nd CEO Since 1993 Arrives With Deep CISO Relationships, Sales Acumen

Michael Novinson (MichaelNovinson) •
July 24, 2024    

Check Point Software tapped the longtime leader of an Israeli cybersecurity incubator to be just the second CEO in the firewall behemoth’s 32-year history.

See Also: How to Strengthen Your Organisation’s Last Line of Defense: Your Human Firewall

The Tel Aviv-based company selected Team8 co-founder and Managing Partner Nadav Zafrir as its next chief executive and tasked him with filling the big shoes of Gil Shwed, who has led Check Point since the company’s inception in 1993. The leadership change will take place in December, when Shwed will shift to executive chairman and Zafrir will look to jump-start innovation to catch rivals such as Palo Alto Networks.

“Check Point for me is like a child, and passing that responsibility to somebody else, I really need to find the perfect person,” Shwed told investors Wednesday. “And I think that we found the perfect person.”

During his decade atop Team8, Zafrir built, invested in and chaired 17 cybersecurity companies, two of which – enterprise browser startup Talon and data security posture management startup Dig – were sold in December to Palo Alto Networks for a combined $714 million. Shwed praised Zafrir’s charisma and leadership skills, as well as his ability to motivate both internal teams and external stakeholders.

‘It’s Not That We Need to Take It to a Different Direction’

Check Point’s stock is up $10.07 – or 5.92% – to $180.07 per share in trading Wednesday, which is the highest the company’s stock has ever traded since it went public in 1996. But the valuation gap between Check Point and Palo Alto Networks has widened over the past half-decade, as Palo Alto’s stock jumped 365% since Nikesh Arora became CEO in 2018 while Check Point’s stock grew just 81%.

“We have loyal customers that love us for many years. We have quality products that people love,” Shwed said. “So, it’s not that we need to take it to a different direction. We need to strengthen the things that work and augment them with additional things.”

Shwed said Check Point conducted a global search and met many qualified candidates since February, when he revealed his plan to step down as CEO, and Zafrir’s experience in both public and private sectors as well as his robust network of CISO relationships made him stand apart from the pack. Zafrir will spend between now and December acquainting himself with Check Point’s operations and culture, Shwed said (see: Gil Shwed to Step Down as Check Point CEO).

Before starting Team8 in 2014, Zafrir spent a quarter century in the Israeli military, eventually leading Israel’s elite military intelligence Unit 8200, where he established the Israel Defense Force’s Cyber Command. Most of Check Point’s top executives and research and development organization is based in Israel, and Shwed said in February he hoped Check Point’s next CEO would be based in Israel.

Shwed praised Zafrir for his excellent communication skills – particularly with CISOs and C-level leaders – as well as his strategic mindset and ability to work with large teams. Check Point is particularly expected to benefit from Zafrir’s background in sales and marketing, and Shwed expects a more fruitful return and faster growth from hiring additional enterprise salespeople.

“Nadav knows how to communicate extremely well outside, specifically with our target audience – the CISOs and the C-levels in different organizations,” Shwed said. “He’s not just a sales guy. He’s definitely a strategist. He knows how to work with large teams. He knows how to encourage people to innovation. And this, I think, is the real CEO material.”

‘Every Single CISO Knows Nadav’

Shwed described Zafrir as a well-rounded strategist, with his background including not only venture capital but also hands-on development of portfolio startups. Zafrir’s outgoing personality and charisma complement Shwed’s more reserved nature, and Shwed said Zafrir is well-known and respected among CISOs globally thanks to building strong connections and a reputable community over recent years.

“He’s probably the most well-known amongst CISOs around the world and has built a huge community of CISOs that consult with him, that work with him, and I think it’s a huge asset,” Shwed said. “When we meet today with CISOs in the industry, every single CISO knows Nadav and mentions Nadav. Building that connection in the last few years is an amazing achievement.”

One trend industry observers will watch for under Zafrir is an increased pace of mergers and acquisitions given his familiarity with so many early-stage companies in both Israel and the United States. Palo Alto Networks has made 10 acquisitions since November 2019 – six of which cost at least $250 million – while Check Point has made just six deals during that time, two of which were worth more than $250 million.

“In every respect – in innovation, in go-to-market, in M&A – I’m looking to energize and do more at Check Point,” Shwed said.