(Reuters) – EBay Inc on Monday named Walmart government Jamie Iannone as its prime boss, handing over the reins to an outsider because the e-commerce agency offers with strain from activist investor Starboard Worth to shake up its administration.
FILE PHOTO: The eBay brand is pictured on a display on this photograph illustration in New York, U.S., July 23, 2019. REUTERS/Brendan McDermid/Illustration
The appointment comes almost a month after Starboard, which owns greater than 1% of eBay’s inventory, mentioned it plans to put in 4 administrators on eBay’s 14-member board and needed the corporate to nominate an outsider as its everlasting chief government.
Scott Schenkel, the e-commerce firm’s chief monetary officer, has been serving as interim CEO since Devin Wenig stepped down in September, citing variations with eBay’s board.
Iannone, who most not too long ago served as chief working officer of Walmart eCommerce, beforehand held management roles at EBay from 2001 to 2009 and can start his time period as chief government officer on April 27.
Starboard didn’t reply to a request for remark.
The hedge fund mentioned in March eBay had been gradual in separating its classifieds enterprise from its market enterprise.
The e-commerce firm final yr bought its ticketing unit, StubHub, for $4.05 billion, after activist buyers Elliott Administration Corp and Starboard urged its sale as a part of a plan that would double eBay’s worth.
“At this time’s announcement of Jamie as the brand new CEO of eBay is a large constructive for the corporate,” mentioned Jesse Cohn, an Elliott accomplice and eBay board member.
“Over the previous yr, eBay has realized full worth for Stubhub and is within the technique of exploring value-maximizing choices for its Classifieds division.”
EBay had mentioned it plans to launch an replace on the classifieds enterprise by the center 2020.
Shares of the corporate have been 1.19% greater at $34.23 in morning commerce.
Reporting by Amal S and Svea Herbst-Bayliss; Enhancing by Aditya Soni