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Webvan CEO Resigns

After two years at the post, Webvan (Nasdaq: WBV) chairman and CEO George Shaheen is leaving the company.

The Foster City-based Internet grocery delivery service, Friday announced Shaheen's departure citing his desire to "pursue personal objectives."

"A different kind of executive is needed to lead the company at this time and as such, it no longer makes sense for me to continue in my role," says Shaheen.

Shaheen's departure comes as the company's stock price is down to 12 cents a share and its own auditors are reportedly questioning whether the company can remain in business.

"I am proud of the role I played in the launch of this pioneering business," says Shaheen, convinced that Webvan has a solid business model. "Unfortunately, changes in the capital markets have altered the timetable and operating approach to the achievement of the model as originally envisioned."

Shaheen had served as served as CEO since October 1999 and was named as chairman of Webvan's board of directors in February 2001.

Bob Swan, chief operating officer of Webvan, will lead the company until the board of directors appoints Shaheen's successor. That decision could come as early as next week.

Webvan says there are no other management changes planned and it has no plans to discontinue its new advertising campaign launched this month.