posted on March 15, 2005 12:46:07 PM new
If eBay CEO left, who'd replace her?
WHITMAN'S DISNEY INTERVIEW SPARKS SUCCESSION TALK
By Michael Bazeley
Mercury News
Is Meg Whitman looking to move on from eBay?
The eBay chief executive took her name out of consideration last week for Disney's then-vacant chief executive position. But the fact that she interviewed with the world-famous media and entertainment conglomerate in the first place has left eBay watchers wondering whether Whitman is finally considering a new career.
The disclosure also raised fresh, albeit fleeting, uncertainty about the future of the online auction company, whose success has been so closely identified with its famous CEO.
Whitman tried to quell speculation that she would leave the San Jose company in an e-mail she sent to employees Sunday night. She acknowledged meeting with Disney's board. But, she said, ``I withdrew my name from consideration, because, in the end, I reaffirmed my belief that working at eBay is indeed the best job for me.''
Observers have long viewed Whitman as a logical candidate to take the helm of another high-profile company. As eBay's CEO for seven years, she has calmly shepherded it into a $3.3 billion-a-year business, one of the most financially successful Internet companies to emerge from the dot-com bust.
At 48, she is still relatively young by CEO standards, with a potentially long executive career ahead of her. And Whitman herself has said that CEOs should consider moving on after 10 years with a company.
Should she leave, Whitman has no obvious successor at eBay. A trio of presidents -- PayPal's Jeff Jordan, international head Matt Bannick and North American chief Bill Cobb -- report to Whitman. The trio swapped jobs in December to ``broaden the leadership experience of eBay's top managers,'' the company said at the time. Maynard Webb, eBay's chief operating officer, and Rajiv Dutta, chief financial officer, also are key players in eBay's senior management.
No one name stands out as a potential successor. But some observers have pegged Jordan as Whitman's likely successor. He's been senior vice president of eBay North America. Before joining eBay, he was president of Reel.com, the video and DVD retailer, and an executive vice president and chief financial officer at Hollywood Entertainment. He also once worked at Disney.
EBay spokesman Henry Gomez would not comment on any succession plans at eBay other than to say that ``the board is always looking at succession.''
``If Meg were to leave,'' said Piper Jaffray analyst Safa Rashtchy, ``I would expect them to look outside for candidates.''
Some analysts were surprised when news reports revealed that Whitman interviewed a week ago with the Disney board, which was seeking a replacement for outgoing CEO Michael Eisner. Through a spokesman, Whitman had previously denied interest in the Disney job.
``That, to me, struck a chord,'' said Scott Kessler, Internet analyst for Standard & Poor's. ``Clearly, that's more than not having an interest. On the one hand, I look at it and say the fact she even entertained those conversations means she might be looking at the next opportunity. But I don't think people would be so concerned if eBay wasn't plagued with so much uncertainty at this point.''
Indeed, questions over eBay's leadership couldn't come at a worse time for the company. EBay reported disappointing fourth-quarter earnings. Users have been revolting over fee changes. Its U.S. growth appears to be slowing. And some analysts are concerned about its competitive prospects in China, a key emerging market.
Investors are worried, too. After a strong run-up in the second-half of last year, eBay's stock has given back nearly all of its 2004 gains. Monday, following weekend reports that Whitman had interviewed for the Disney job, eBay's stock sank 4.6 percent to $36.48 a share.
``We know she won't be there forever,'' Rashtchy said. ``Disney is an interesting opportunity to turn around a big company. Disney would be a huge feather in anyone's cap. And Meg is qualified to do that.''
Whitman worked for Disney for several years. She told employees in her e-mail that she still has a ``fond spot in my heart for the company.''
``It's quite possibly the only other company I would ever think of running after eBay,'' she wrote.
Ina Steiner, who follows eBay for the online newsletter Auction Bytes, said Whitman's marketing savvy would have been a good fit at Disney.
``I think it would have been a fantastic match for both Meg and Disney,'' Steiner said. ``Her strong point is branding, and I think she would have a lot bring the table.''
In the end, though, her flirtation with Disney was short.
After being approached by Disney head-hunter Heidrick & Struggles, she met with the company's board Sunday, March 6, and by the following Friday withdrew her name from consideration, eBay said.
``She took the meeting and decided she wouldn't leave,'' Gomez said. ``That's it in a nutshell.''
Does this mean Whitman is open to other opportunities?
Executive recruiter Jon Holman doesn't think so.
``To me, the Disney thing for Meg Whitman was a one-off, `I can't imagine working for any other company' kind of thing,'' Holman said. ``I would be very surprised if Meg Whitman were in play and responsive to other calls. I think it's more likely that she'd go off and be president of Harvard or something. There's no obvious cooler place to be than eBay.''
posted on March 15, 2005 12:47:47 PM new
CEO: `eBay is indeed the best job for me'
Here is the complete text of eBay Chief Executive Meg Whitman's e-mail to company employees explaining her decision to stay at the online auction company's helm:
Hello everyone:
You may have read news reports on the overture The Walt Disney Company made to me to be their CEO. I thought I'd take a moment to explain those reports.
A few weeks ago, the firm handling Disney's search contacted me to see if I would be interested in the Disney job. As some of you know, I worked at Disney earlier in my career, and I have a fond spot in my heart for the company. It's quite possibly the only other company I would ever think of running after eBay. So, I asked the recruiter for more information and agreed to meet with Disney's board a week ago. On Friday afternoon, I withdrew my name from consideration, because, in the end, I reaffirmed my belief that working at eBay is indeed the best job for me.
eBay is a marvelous company that has been extremely good to me. My past 7 years at eBay have been a fabulous adventure, both personally and professionally. I owe eBay, its community and all of you an awful lot. But perhaps even more important, I believe eBay has a remarkable future ahead of it. Everywhere I turn to look, whether it's our North American business, International, PayPal or New Ventures, I see tremendous opportunity. Great things remain to be done, and I very much want to be a part of that future.
Thank you very much for your understanding. And thank you for everything you do for eBay and our users every single day.
As always, I'd be happy to answer any questions you have. Please feel free to e-mail me.
