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Banking, finance, and taxes

Changing CEO’s During Palm Pre Launch, Risky Notion (PALM)

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By Douglas A. McIntyre Updated Published
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What do you do as an investor when you have a hot product launch that is the entire future of a company and a new CEO gets named to replace a long-term company leader?  Palm Inc. (Nasdaq: PALM) just launched the Pre smartphone and today after the close announced that the board of directors has appointed Jon Rubinstein as Chairman and CEO upon the departure of Ed Colligan.

Colligan is stepping down after sixteen years of leading Palm.  Rubinstein joined Palm as Executive Chairman in October 2007 to help bring innovation back to the company.  He will assume the CEO role on June 12.  Colligan plans to take some time off, but will then join Elevation Partners which is deeply entrenched into Palm.

This may not be a shock to many in the field, but the timing here is not without risk.  Colligan was brought in as a leader and is supposed to be a take-charge manager that commands respect.  Shares are actually a tad higher in the after the announcement, and based upon the missteps we saw for years at Palm it is easy to say many would be cheering today’s news.  We do not take this as a key endorsement of the past, but the market is the market.  Shares are trading at $12.07 after closing down 5.5% at $11.99 today.

Jon C. Ogg
June 10, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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