eBay's CEO Is Quitting Goldman's Board

Meg Whitman, the CEO of eBay (EBAY - Cramer's Take - Stockpickr), has resigned from the board of directors of Goldman Sachs(GS - Cramer's Take - Stockpickr).

Whitman's resignation is effective immediately, Goldman Sachs said in a statement. The investment bank did not offer any explanation for Whitman's departure, although her tenure on the board became part of a controversy when it was revealed that she and other prominent executives received shares in initial public offerings handled by Goldman.

"We are grateful to Meg for the contribution she has made as a director," said Goldman Sachs CEO Henry Paulson Jr. in the statement.

eBay representatives did not immediately return calls seeking comment on Whitman's resignation from Goldman's board.

Whitman joined Goldman Sach's board in October 2001. Her role at the company came under scrutiny in October after a congressional investigation revealed that she had received shares in more than 100 initial public offerings of stock managed by Goldman Sachs since 1996, re-selling many at a profit.

Goldman dispensed shares to other high-profile executives, such as former Enron Chairman Kenneth Lay, former Tyco CEO Dennis Kozlowski, Yahoo! co-founder Jerry Yang and TheStreet.com director Martin Peretz, according to the congressional report.

But Whitman's receipt of the IPO shares raised eyebrows because of her role on the board, her previously positive reputation and suggestions that the IPO shares were part of a quid pro quo deal. Goldman Sachs managed eBay's own IPO in 1998 and helped with the company's acquisition of PayPal earlier this year.

Goldman Sachs did not pressure Whitman to resign from its board, said company spokesman Lucas Van Praag. Goldman will seek to find a replacement for her, he said.

Whitman, who has served on eBay's board since 1998, is set to join the board of directors of Procter & Gamble in January. She has previously served on the board of Staples.