Reuters reports that rumors of Motorola Inc. (NYSE: MOT) CEO Ed Zander's imminent departure are driving up Motorola stock 3% in mid-afternoon trade.
Carl Icahn, the corporate raider -- now known as "activist investor" -- has been complaining for months about Motorola's weak cell phone sales. And Icahn has been pinning the blame on Zander.
Now another activist shareholder, Eric Jackson, who published a statement online entitled "Motorola Plan B" this week, has added to the pressure on Zander. But Jackson has the support of a mere $1 million worth of shareholders -- Motorola's market capitalization dwarfs that -- at $41 billion.
Motorola, whose shares have lost about a third of their value since mid-October on disappointing results, posted a first-quarter loss due to weak handset sales caused by a lack of advanced phones and tough price competition.
In this case, I don't know if a new CEO would make much of a difference to shareholders. But if Zander leaves, Motorola will need a new one -- and fast.
Peter Cohan is president of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in Motorola.
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