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Still No CFO for Marvell

It appoints its third temporary finance chief in nine months.


Marvell Technology

(MRVL) - Get Marvell Technology, Inc. Report

appointed its third temporary finance chief in nine months as the chipmaker's search for a permanent CFO drags on.

The Santa Clara, Calif., company announced Thursday that interim CFO Michael Rashkin will resign immediately due to personal health concerns. In his stead, Marvell named George A. de Urioste, who most recently served as the finance chief at

Chordiant Software



Shares of Marvel were up 7%, or 73 cents, at $11.22 in midday trading Thursday.

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The treadmill of temporary CFOs marks the latest twist in a protracted management shuffle resulting from a stock-option backdating scandal at Marvell.

Marvell's last full-fledged CFO, George Hervey,

left the company in May after an internal investigation found evidence that options were improperly backdated. Marvell said that Hervey failed to establish a system of proper controls for stock options, among other things.

The chipmaker tapped Mike Tate, its corporate controller and treasurer, to fill Hervey's shoes. But Tate

abruptly resigned three months later and was replaced by Rashkin, an insider who worked as the general tax counsel for a Marvell subsidiary, and served a stint as vice president of strategic development.

Oppenheimer analyst Allan Mishan characterized the latest move as a "nonevent."

"Mr. Rashkin was unlikely to be appointed permanent CFO, in our opinion; thus, one interim CFO has been exchanged for another," he wrote in a note to investors. Oppenheimer makes a market in Marvell shares.

But he said that investors are probably growing impatient with Marvell's management. "Given Marvell's reputation, it is surprising that a full-time CFO has not been appointed yet," Mishan wrote.

The company's shares are down 47% from their 52-week high of $21.20.

Marvell's announcement offered no timeline for the appointment of a permanent CFO, although it noted that executive recruiting firm Heidrick & Struggles is on the case, just as it was the last time Marvell named a temporary CFO.