For the first time in its 75-year history, a Galvin won’t be at the helm of Motorola .
CEO Christopher Galvin, grandson of company founder Paul Galvin, announced his resignation late Friday after a dispute with the company’s board of directors.
“While I have achieved substantial results, the board and I do not share the same view of the company’s pace, strategy and progress at this stage of the turnaround,” Galvin said in a statement. “Accordingly, it is time for me to pass the baton to new leadership.”
Investors cheered the news, sending Motorola’s stock up 9% on Monday on hope that the company’s flagging market share can be reversed under new leadership. Galvin was often viewed as slow to respond to competitive challenges during his six-year tenure.
One name mentioned as a possible successor was COO Mike Zafirovski, who turned around the company’s wireless handset unit after spending 24 years at GE under Jack Welch.
Stocks fell sharply Monday after the G-7 nations endorsed flexibility in exchange rates, a statement that was taken to mean that Japan will let the yen rise. The statement sent shock waves through global markets, and the U.S. dollar and treasury bonds fell on the news. While a weaker dollar could be good news for U.S. corporate earnings, it could also mean the outflow of foreign funds, as investors witnessed on Monday.
The Nasdaq plunged 31 to 1874, the S&P 500 lost 13 to 1022, and the Dow fell 109 to 9535. Volume declined to 1.25 billion shares on the NYSE, and 1.72 billion on the Nasdaq. Decliners led 23-8 on the NYSE, and 21-10 on the Nasdaq. Downside volume was 80% on the NYSE, and 77% on the Nasdaq. New highs-new lows were 109-8 on the NYSE, and 246-1 on the Nasdaq.
Serial acquirer InterActiveCorp announced the acquisition of Hotwire. Priceline
plunged 15% on the news.
Amazon was down only slightly on plans to sell sporting goods.
McData soared 10% on an upgrade.
Veritas fell 4% on competition from EMC
.
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