eBay Loses Its Swette Equity

Online auctioneer eBay (EBAY Quote) was dealt a blow Monday as its chief operating officer departed.

Brian Swette, who has been COO since 1999, will step down Jan. 1, the company announced after the close of trading Monday. The San Jose, Calif.-based company won't name a new COO but instead will dole out Swette's duties to several other executives.

Swette's day-to-day responsibilities in marketing, category management and business development will be divided among the following executives: Maynard Webb, president of eBay technologies; Rajiv Dutta, chief financial officer; Jeff Jordan, senior vice president and general manager of eBay U.S.; Matt Bannick, senior vice president and general manager of eBay International; and Bill Cobb, senior vice president of global marketing.

eBay shares ended the day at $69.29, up $2.70, and are up about 109% on the year. They slipped fractionally to $68.78 after the close of regular trading.

"He was a talented executive, but they have a very deep team there," says Steve Weinstein, who covers the company for Pacific Crest Securities. "I don't think it's indicative of any problems with the company." (Weinstein has a strong buy on the stock, and his firm doesn't have an investment banking relationship with the company.)

In the announcement, Swette said he resigned to spend more time with his children, who live in Florida. He isn't leaving the company completely, however. He will stay on as head of corporate development and as a senior adviser to Meg Whitman, eBay's president and CEO.