Date: Tuesday, January 29, 2008

EBay Boss Announces Retirement

EBay chief executive Meg Whitman has announced her retirement, after a decade at the helm of the auction giant.

When she retires in March, Ms Whitman, 51, will hand responsibilities over to John Donahoe, who currently runs the firm’s main auction business. This announcement was expected by some analysts, including Martin Pykkonen at Global Crown Capital, who called the move "no big surprise."

Ms Whitman’s retirement follows a disappointing 2008 forecast for eBay, which has brought share prices in the site down by 5 per cent. EBay’s bleak predication for 2008 contrasts starkly with profits they posted for the three months to December, which jumped a massive 53 per cent to £271m. The modest prediction for the coming year is said to indicate a decline in the amount of merchandise that is listed for sale on the site.

During Ms Whitman’s stint as eBay boss, she was praised for transforming the company into a multi-billion dollar business. Indeed, when she arrived at eBay 10 years ago from toy company Hasbro, the auction site had around $4 million in revenue and just 30 employees. However, eBay now boasts around 11,000 employees and a network of related sites, including Skype and Paypal.

Ms Whitman is not severing her links with eBay completely and will remain a director at the firm. However, she believes that it is the right time to retire. She said: "With the level of technological change, competitive dynamics, consumer change in our industry, sometimes you need a fresh set of eyes and a new vision."

Ms Whitman was born in Long Island, New York and received an MBA from Harvard University. Married to a brain surgeon, she is a prominent Republican and also boasts a large personal fortune estimated at $1.3 billion. Last year, Fortune magazine ranked her as the third most powerful businesswoman in the world.

Source:

Guardian

BBC