eBay Inc on Monday announced Jamie Iannone as its new Chief Executive Officer, who is currently attached with Walmart as Chief Operating Officer of its e-commerce division.
The move by eBay of putting the wheel in an outsider’s hand comes as it has been facing mounting pressure from activist investors Starboard Value to make appropriate changes in its current board.
Starboard is currently holding more than 1% of the stake in eBay and new appointment comes after last month the hedge fund not only asked the e-commerce firm to search for external candidates to permanently fill its CEO job but also nominated four new directors to its board that have 14 members.
Starboard’s Portfolio Manager Peter Feld at the time said the current board remained incompetent in making big decisions, as it still failed to appoint a new CEO.
After coming in conflicts with the board, eBay’s former CEO Devin Wenig left the position in September and company’s chief financial officer Scott Schenkel is serving as an interim CEO of the company since then.
Iannone previously remained part of eBay in leadership roles for about 8 years from 2001 to 2009 and will take charge of his new position on April 27.
Starboard last month also criticized eBay for remaining slow in moving towards separating its classified business as the hedge fund was in view that it is in direct competition with the company’s core business of marketplace. Earlier in February, Starboard wrote a letter to eBay urging to get rid of their classified business unit.
Under the pressure from activist investors Elliott Management and Starboard, last year eBay sold its ticketing unit StubHub for an amount of $4.05 billion.
Appointing Jamie as the new CEO of company would be a huge positive for eBay, said Jesse Cohn, an Elliott partner, who is also a member at eBay’s board.