Ebay’s CEO David Wenig quits abruptly over disagreements with board

Companies

Ebay’s chief executive and president David Wenig has abruptly stepped down after stating that he was “not on the same page” as its new board.

Wenig, who had helmed the company for four years, announced his departure from the ecommerce giant yesterday amid growing tensions between himself and activist shareholders Elliott Management and Starboard Value.

“In the past few weeks it became clear that I was not on the same page as my new board. Whenever that happens, it’s best for everyone to turn that page over,” Wenig tweeted.

It is understood that the key issue of contention was over the sale of its classified ads business Gumtree and ticketing service StubHub.

After purchasing a stake in the company and introducing members to Ebay’s board in March, Elliott Management and Starboard Value have been piling pressure on the company to offload the businesses in order for it to bring focus back to its core marketplace.

READ MORE: Ebay could be forced to sell off Gumtree & StubHub by investors

Ebay says it is continuing to move forward with the sale of these assets, brining in Goldman Sachs to act as an advisor.

Scott Schenkel, the company’s current chief financial officer, will take on Wenig’s role on an interim basis while Ebay carries out an internal and external search for a permanent replacement.

Meanwhile its vice president of global financial planning and analysis Andy Cring will replace Schenkel.

Ebay’s chairman Thomas Tierney stated that Wenig was a “tireless advocate for driving improvement in the business, particularly in leading the company forward after the PayPal spin-off”.

“Notwithstanding this progress, given a number of considerations, both Devin and the board believe that a new CEO is best for the company at this time.”

Despite the departure Ebay sought to reaffirm its full-year guidance of between a two and three per cent revenue growth and adjusted earnings of between $2.70 and $2.75 per share.

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