x
Data Center Infrastructure

F5 CEO Abruptly Steps Down

F5 Networks CEO Manny Rivelo, appointed in April, has resigned, and is being replaced by John McAdam, Rivelo's predecessor and long-time CEO.

Rivelo stepped down "for matters of personal conduct unrelated to the operations or financials of the company," F5 Networks Inc. (Nasdaq: FFIV) said in a press release.

McAdam joined F5 in 2000 and served as president and CEO until he retired in July. McAdam will remain on the board but will step down as chairman to focus on his CEO duties; Alan Higginson, F5's lead independent director, has been named non-executive chairman of the board.


Find out more about key developments related to the systems and technologies deployed in data centers on Light Reading's data center infrastructure channel


Rivelo officially became CEO in July after training with McAdam since April, and planned to increase online security and software sales for the ADC provider, according to the Seattle Times, which also reported that F5 had strong financial returns during Rivelo's two quarters as CEO.

While at F5, Rivelo expanded F5 beyond the data center to the cloud to complement F5's hardware products, the company said in a press release announcing Rivelo's appointment as CEO in April. He joined F5 in 2011, after serving as senior VP engineering systems and operations at Cisco Systems Inc. (Nasdaq: CSCO), where he served for 19 years. 

Related posts:

— Mitch Wagner, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profileFollow me on Facebook, West Coast Bureau Chief, Light Reading. Got a tip about SDN or NFV? Send it to [email protected]

Page 1 / 2   >   >>
kq4ym 1/10/2016 | 2:08:25 PM
Re: 'Personal conduct unrelated to the operations or financials of the company' I wonder how executive caught in scandalous circumstances fair in their career. I'd bet that it' doesn't put a dent in the salary of their next job. It would make you wonder if there's any disincentive for bad behavior or at least doing things you wouldn't tell you mother.
mendyk 12/30/2015 | 10:21:36 AM
Re: 'Personal conduct unrelated to the operations or financials of the company' Honesty, as most of us learned by age of 5, is the best policy. It's also a policy that gets defenestrated whenever lawyers are involved.
kq4ym 12/29/2015 | 5:40:58 PM
Re: 'Personal conduct unrelated to the operations or financials of the company' One wonders if it's better to just get the truth out to the public and shareholders or hide behind the "personal conduct" mystery explanations. I would think, although not an easy road to take, that honesty and full disclosure is probably the best, eliminating lots of speculations of maybe even more dastardly behavior.
brooks7 12/17/2015 | 1:09:41 AM
Re: 'Personal conduct unrelated to the operations or financials of the company' It does not.

They would say that any embezzlement issues were not material...and probably covered by insurance.  Thus no financial issues.  I think that is an outside chance.  I have seen it in public companies and not even be put in any filings.

Creation of the hostile workplace.  Do you really think hitting on a secretary would be called an operational issue?  That's all it has to be.  Again, it would not reach the level of being in a 10-K.  

You are giving the reporting a very wide profile of belief.  I think you should assume that they are lying through their teeth and see what you can twist into being not a financial nor an operational issue. If it was anything that was "normal", they would tell you what it is.  The actual issue is probably being dealt with in a way to not cause embarrassment, law suits or the filing of criminal charges.  Think about what those things could be.

seven

 

 
Mitch Wagner 12/16/2015 | 9:15:57 PM
Re: 'Personal conduct unrelated to the operations or financials of the company' brooks7 - But F5 said his resignation had nothing to do with the operations or finance of the company. That rules out creation of a hostile workplace or embezzlement, right?
mendyk 12/16/2015 | 11:14:40 AM
Re: 'Personal conduct unrelated to the operations or financials of the company' This is another example of how weasel-wordy public statements from corporate PR departments do more harm than good to the reputation of the company and the individual in question.
brooks7 12/16/2015 | 11:07:27 AM
Re: 'Personal conduct unrelated to the operations or financials of the company' Well, it is either extremely severe OR a repeated offense that was reported to the BoD through the ethics process.

The only things that would be severe enough would be the criminal type of activity.  However, one would expect that to be of public record first.  So, I doubt that.

This leads me to believe that somebody reported on him through the Ethics process (required really as a public company).  The most likely issue would be multiple instances of creation of a hostile workplace (could be sexual or racial).  Drugs are possible, but there are so many functioning addicts that I would find it unlikely.

A less likely (in a large company) mechanism would be embezzlement by proxy.  I have seen people "hire" companies to do work that are "owned" by their relatives.  

seven

 
Mitch Wagner 12/16/2015 | 10:13:45 AM
Re: 'Personal conduct unrelated to the operations or financials of the company' Ray - If it is wrongdoing, then the wording "unrelated to the operations or financials of the company" suggests it's not directly related to F5: Tax problem, criminal charge. Perhaps "possession of illicit substances," as you say, but given that wording I would not expect to see "supplyig false information related to his promotion to CEO ... or inappropriate behavior related to fellow F5 staff." 
[email protected] 12/16/2015 | 5:48:21 AM
'Personal conduct unrelated to the operations or financials of the company' 'Personal conduct unrelated to the operations or financials of the company'...

What does this suggest? 

Not that he has found a better job, I don't think. And if it was something personal, sch as a family illness, the wording would be very different, surely?

This suggests he was caught doing something he shouldn't have been doing.... and that could range from supplying false information related to his promotion to CEO, to being caught in possession of illicit substances, or inappropriate behavior related to fellow F5 staff.

If it wasn't one of he latter, I'm sure the wording would not be so suggestive...
Mitch Wagner 12/15/2015 | 6:11:44 PM
Re: Musical chairs at F5 Hard to say. Could be health issue or family emergency. 
Page 1 / 2   >   >>
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE