Exec's Departure Rocks Rackable
Shares of
Rackable Systems
(RACK)
plunged nearly 10% Tuesday, followingnews of the resignation of the company's head ofsales.
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Milpitas, Calif.-based Rackable, whichsells servers used in corporate data centers,announced late Monday that Thomas Gallivan, vicepresident of worldwide sales, has notified thecompany that he will leave in early January pursuantto a written separation agreement.
Rackable did not provide any reason for Gallivan'sexit and said the company has started a process tofind a replacement -- suggesting the departure wasnot planned.
Until Rackable finds a new head of sales,President Todd Ford will oversee domestic salesactivities, and CEO Thomas Barton will take overinternational sales.
According to a filing by Rackable, Gallivan'sseparation agreement provides for aggregate severancepayments of up to $171,000 and a release by Gallivanof claims against the company.
Shares of Rackable fell 9.5%, or $3.17, at $30.05 in midday trading Tuesday.
