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Bank of America chairman sails away while company seeks new CEO

Bank of America (BAC) is in the midst of a frantic search for a CEO to succeed Ken Lewis, who is stepping down before the end of the year.

In an article on Bank of America's murky succession plan, USA Today buries this newsworthy factoid seven paragraphs down. From the "You can't make this stuff up" department:

BofA Chairman Walter Massey, who is leading the search, is currently on vacation on a ship and will not be reachable until Nov. 23, according to Morehouse College, where Massey is president emeritus.

Continue reading Bank of America chairman sails away while company seeks new CEO

Building eBay 2.0: Whitman and Donahoe on eBay's future

Back in August, I suggested that we should perhaps start looking at eBay differently. It is a mature company, I argued, and hence would probably require different valuation methods, lower multiples, etc. At the same time, I noted, the market has a tendency to get there naturally.

Today, Fortune ran a fascinating article about eBay Inc. (NASDAQ: EBAY), the issues it is facing and its management team. The article naturally focuses on eBay's CEO, Meg Whitman, and on eBay's new president of its marketplaces business, John Donahoe, believed to be Whitman's successor.

eBay's share price has been halved from its December 2004 high of $59, as investors are concerned mostly with the slowing growth rates. While growth rates have been most concerning in eBay's core auction business, the Skype acquisition is also a focus, especially as the promised synergies haven't materialized yet. There is also the fierce competition in Asia, and let's not forget, several key people leaving.

Many note, quite accurately too, that eBay is a highly profitable company with enviable operating margins and still high growth. But most, even eBay's management, realize that the company is changing as it is entering the "grownup" realm of large and mature corporations, where size and age could potentially drag it down.

Continue reading Building eBay 2.0: Whitman and Donahoe on eBay's future

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IndexesChangePrice
DJIA-74.9212,454.83
NASDAQ-1.852,837.53
S&P 500-2.861,317.82

Last updated: May 28, 2012: 09:01 PM

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