- Strong signs for push-out forces
- After around five years on the job
- Praise and good wishes for Kadambi
- Paul Porrini takes over in the interim
(management-change.com) — Redwood City, California, November 09, 2016 — Jayant Kadambi, chief executive of YuMe, leaves. It is an abrupt change. As announced by YuMe, Inc. in a news release and in a regulatory filing published on Wednesday, November 09, 2016, Jayant Kadambi leaves the post as Chief Executive Officer at the provider of digital video brand advertising in a surprising move after around five years on the job, effective immediately.
Kadambi’s duties are taken over in the interim by Paul T. Porrini, most recently Executive Vice President, General Counsel and Secretary at YuMe, Inc.
The move is part of a management shake-up.
No reason given
In the announcement, YuMe did not explicitly explain the obviously compelling reason for Kadambi’s sudden move, opening the door for speculation.
Generally speaking, it is often an alarm signal for shareholders when a CEO leaves the post abruptly and without comprehensible reasons being given.
“Will no longer serve”
YuMe said: Jayant Kadambi “will no longer serve as YuMe’s Chairman of the Board and Chief Executive Officer, effective immediately”.
Precise information about the future plans of Kadambi was not immediately available.
Share price decline
The change follows a decline in the share price of YuMe, Inc. since September 2013.
Chaired by Eric Singer
Additionally, the Board of Directors has appointed Eric Singer, a current independent Board member and managing member of VIEX Capital Advisors, the largest shareholder in the Company, to the role of Chairman.
Singer has served as a member of the board since May 2016.
On the job as CEO since 2011
Kadambi is a founder of YuMe; he has served as YuMe’s President since August 2008, YuMe’s Chief Executive Officer since August 2011, and as a member of the Board since YuMe’s inception in December 2004.
Prior to co-founding YuMe, Kadambi was Vice President, Research and Development of Netopia, Inc., a publicly-held manufacturer of DSL equipment and service provider for Internet service providers and carriers.
He was a co-founder of StarNet Technologies, Inc., a voice over DSL company, which was acquired by Netopia, Inc. in 1999.
Prior to co-founding StarNet, Kadambi held various technical and marketing positions in Advanced Micro Devices, Inc.’s networks division and AT&T Bell Labs, where he worked on high-speed LAN systems, hardware and DSL technologies.
Kadambi received his B.S.E.E. and Masters in Electrical Engineering from Rensselaer Polytechnic Institute.
Kadambi will remain on the Board.
As a general rule, when a top leader announces to step down with no permanent successor available, it’s a sign that the move was unplanned and too early.
No bad blood
The fact that Kadambi is staying on as a director would suggest there’s no bad blood with the board.
Strong signs for push-out forces
It is not completely certain what forces eventually triggered Jayant Kadambi’s move.
The Push-out Score™ determined by management-change.com suggests strong signs for push-out forces that may have contributed to the management change.
Read the full story in the management-change.com report 42.2016 ($).