Shock return of technology CEO after boardroom power struggle
THINGS may not be what they appear at the listed company Wandisco after the shock exit and now the surprise return of chief executive David Richards.
Mr Richards abruptly left the company at the end of September after having led the company since its inception in 2005.
He said he had the backing of 58% of the shareholders of the company, suggesting a leadership battle in the background.
In a revealing turn of events, chairman Paul Walker and non-executive director Ian Duncan have simultaneously stepped down from the board with immediate effect.
The only explanation given for the sudden changes at board level was a statement by the departing pair. They said: “As independent non-executive directors, we had not considered David the right person to lead the Company going forwards.
“Since the announcement of 29 September 2016 regarding David Richards stepping down from the Board, we have been informed that approximately 58% of the Company’s shareholders support David’s reinstatement as CEO. Accordingly, we have decided to resign from the Board with immediate effect.”
Chief executive Mr Richards will also take on the role of interim chairman until an appointment is made.
The news of Mr Richards’ departure in September followed hot on the heels of the announcement that the Sheffield and San Francisco-headquartered company appointed Erik Miller as chief financial officer and a director of the board. Mr Miller has also resigned from the board with immediate effect.
A turbulent year for the loss-making firm will be painful to hear for investors, however it said that cash costs continue to decline and it had received new equity funding secured in June meaning it is on track to cash flow break-even.
David Richards, CEO of WANdisco, commented: “I am delighted to be returning to WANdisco with the express backing of approximately 58% of our institutional shareholder base. I have never lost sight of the tremendous opportunities that exist across our business: we have developed a truly world class product portfolio which continues to underpin our strong new business pipeline.
“I look forward to updating the market of our continued strategic progress over the coming months in addition to confirming a number of new Board appointments.”
