Here is another explanation to the management change from Yahoo!
This is a good post from the Yahoo! PRFM thread:
Family power struggle: reason CFO resignation
by: legalbuy (45/M/Boston, MA) 3103 of 3124MR. Lekach, which is the
current CEO and Chairman has had many run-ins with his Son-in law, Simon
Falic on a variety of fronts (compensation stock options, strategy,
management style, overall direction and vision). Additionally, Mr.
Falic's leadership skills were lacking in many fronts, thus the reason
MR. Falic was "demoted" from the titles of President and CEO in October
28, 1998 to his current title of CFO, COO and treasurer. Mr. Lekach, who
retired in 1994, came out of retirement and was appointed by the board
to take over for Mr. Falic October 28, 1998 the title of CEO and
Chairman of the Board.
I don't know about you guys but If I was "demoted" from the position of
CEO and Chairman to CFO and and COO I would be very bitter. MR. Falic's
inevitable demise came 2 weeks ago when Mr. Lekach asked Mr. Falic to
relinquish his title of stock options committe member and take a pay
cut. The writing has been on the wall for Mr. falic to resign since he
was demoted October 28, 1998 and replaced by Mr. Lekach.
Nepotism is not good and creates these family power struggles, so when a
family member leaves or resigns his/her position, all shareholders
benefit as their is less familiy in-fighting over money and power, and
unbiased fresh views and visions of growth can come in from
"out-siders".
Hope this clarified the resignation and why it happened.
We go vertical on Monday!!! |
