Feeds

eBay rejects Carl Icahn's board nominees as 'inexperienced'

Asks shareholders to vote against new board members and PayPal spin-off idea

Top three mobile application threats

eBay has rejected both of Carl Icahn's nominees for its board, saying they're not qualified for the job – and has urged its investors to do the same.

The online marketplace said in a pre-annual general meeting filing that it had looked at the candidates proposed by the activist investor, who's agitating to get the firm to spin off PayPal, and found them wanting.

"eBay’s Board does not endorse any Icahn Group nominee and opposes the Icahn Proposal and unanimously recommends that you disregard any proxy card or solicitation materials that may be sent to you by the Icahn Group," the filing said.

Icahn has repeatedly accused the existing eBay board of insufficient corporate governance and conflicts of interest and is recommending that Icahn Enterprises employees Daniel Ninivaggi and Jonathan Christodoro get seats at the top.

But the chairman of eBay's corporate governance and nominating committee Richard Schlosberg said that the board had decided against Icahn's nominees.

"After careful review, the board concluded that they are not qualified candidates based on the criteria that have consistently been applied by the committee, including in particular that neither nominee has relevant experience or expertise," he said.

"In addition, neither nominee would comply with the board's governance guidelines on overboarding - each is on four public company boards and Mr. Ninavaggi is co-CEO of Federal Mogul."

eBay founder and chairman Pierre Omidyar urged stockholders in a statement to back the company's slated board, including chief exec John Donahoe.

"Fred Anderson, Ned Barnholt, Scott Cook and John Donahoe are proven leaders who have been enormously valuable directors. They demonstrate the caliber of leadership, business experience, insight and expertise that our company needs and that I believe our stockholders expect on our board," he said.

In the filing, the company also asked shareholders to vote against Icahn's proposal that eBay spin of lucrative payments division PayPal, asserting once again that the companies will do better together.

Not to be outdone, or let a day go by without one of his famous open letters, Icahn had his own updated comments on the issue today. The investor accused Donahoe once again of being either "incompetent or negligent" in selling Skype to eBay board member Marc Andreessen's venture capital fund. Icahn has maintained that there's something fishy in eBay selling Skype to the fund, which then made around $4bn a little over a year later when it sold on to Microsoft.

Icahn said that PayPal could "wither" if it stays tied to eBay.

"I believe that if it is left as a division of eBay, PayPal may well go the way of other former technology greats such as Blackberry, Dell, Eastman Kodak, Polaroid, Nintendo, Xerox, Sony, Palm, and AOL – the same way that Motorola Mobility may have gone had we not been able to convince Motorola’s board to bring in a new CEO and separate the companies – ultimately resulting in a sale to Google," he said. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.