Management changes hands
In the previous part of the series, we saw that the internal investigation of Marvell Technology (MRVL) pointed toward its management’s operating style. Moreover, Marvell’s management has a history of illegal acts.
This time, when Marvell’s management came into question, the company’s two founders Sehat Sutardja and Weili Dai were forced to resign with immediate effect on April 5, 2016. The interim office of the CEO took control, and the search for a new CEO began.
In May and June 2016, many key appointments were made to Marvell.
- Maxim Integrated’s (MXIM) Matthew Murphy was recently appointed as Marvell’s president, CEO, and board member.
- Intersil’s (ISIL) Willem Meintjes was appointed as senior vice president of finance.
- Intersil’s Andy Micallef was appointed as chief operating officer.
- Chris Koopmans was appointed as executive vice president of marketing and sales.
- Juniper Networks’ (JNPR) Mitchell Gaynor was appointed as executive vice president and chief legal officer.
- Ernst & Young’s retired partner Michael Strachan was named as an independent board director, making Marvell’s an eleven member board.
- Hedge fund Starboard Value acquired a 6.7% stake in Marvell and appointed one of its directors, Richard Hill, as the company’s chair.
Analysts and investors react positively to management change
Investors and analysts welcomed the change in Marvell’s management. The company’s stock rose by 13% a day after the appointment of its new CEO. The new management renewed optimism in MRVL, with some analysts expecting it to change the company’s financial performance or even sell part or all of the company.
Next, we’ll see what makes Marvell a good acquisition target. The PowerShares QQQ Trust, Series 1 ETF (QQQ) has holdings in technology stocks, including 8.7% holdings in semiconductor stocks. It has 0.19% exposure to MXIM.