NEW YORK -Chief Executive Officer of AMD, Dirk Meyer has been forced to resign. AMD shares have tumbled on the news.
Andy Kibbens the CEO of The Markets Are Open was taken by surprise, “I logged onto google finance yesterday and I saw his name proudly displayed under AMD in the officers and directors category at the bottom of the page of a stock. That means when google makes their next update, I will not see his name there. Then it will truly sink in that he is no longer the CEO there until then I can always dream."
Shareholders often send stocks lower when a CEO is dismissed. An example is Hewlett Packard HPQ, where shares have remained depressed based on its previous stock trading prices. Another example is Lexmark where shares dropped 20% on the announcement of its CEO's retirement. However, shares of Pfizer rallied when their CEO retired. Perhaps it was because its CEO said it could not handle the stress and that Pfizer stock has done poorly under his tenure. Investors feel the vision that they bought into the company for can change with a new CEO therefore they no longer want to own the stock.
The dismissal of Mr. Meyer has triggered speculation that the upcoming quarterly report to be released on January 20th would include poor financial news. To counter this belief the company said that they had better than expected sales. Senior Vice President and CFO Thomas Seifert, 47 will replace Meyer as the interim CEO.
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