Answer: Spend more time with your family, of course!
That's what Riverstone Networks Inc. founder Piyush Patel announced he would do as he resigned from Riverstone's board of directors this week (see Riverstone Founders Leave Board).
Riverstone founder Romulus Pereira also resigned from the company's board, the company announced Monday, leaving the board without a chairman. Pereira had also served as the company's president and CEO until Oscar Rodriguez's appointment in August.
Whatever the reasons publicly given, it's abundantly clear that Rodriguez and the new Riverstone management team want to put a new stamp on the company, and the departure of Patel and Pereira completes a clean sweep of Riverstone's leadership. Rather than fill the chairman of the board post, the company has appointed an independent director as a "Lead Director" to keep an eye on the board.
The turnover is not surprising, as Riverstone has had its share of bumps this year:
- Riverstone Disappoints the Street
- SEC Calls on Riverstone
- Accounting for Riverstone's Problems
- Riverstone Ailing in Asia
- Riverstone Branded 'E' by Nasdaq
- Kern Decreases Riverstone Stake
- Riverstone Readies Restatement
- Riverstone Restates, Stock Falls
- Riverstone Oops! Level Rises
- Nasdaq Delists Riverstone
- Riverstone in Debt Dustup
Table 2: Riverstone Management Team, as of 5/2002
|Romulus Pereira||President and CEO|
|Robert Stanton||Executive VP and CFO|
|John Kern||Executive VP, Worldwide Sales and Service|
|Suresh Gopalakrishnan||Executive VP of Engineering|
|Andrew Feldman||VP of Corporate Marketing and Development|
|Source: SEC filings|
Table 3: Riverstone Management Team, as of 12/2003
|Oscar Rodriguez||President and CEO|
|Roger Barnes||Executive VP and CFO|
|Scott McMillan||VP of Operations|
|Praveen K. Mandal||VP of Engineering|
|David Ginsburg||VP of Marketing|
|Source: Company data|
Several nagging questions remain. First of all, is all this cleanup happening too late? "How far have Extreme Networks, Foundry Networks, and Cisco Systems gotten during Riverstone's time of disruption?" asks Chet White, an analyst with Merriman Curhan Ford & Co.
The company does have something to build from, though. As noted in a recent survey of carrier employees and executives conducted by Heavy Reading, Riverstone gets high marks from incumbent service providers as a metro Ethernet supplier.
Table 1: Metro Ethernet Equip. Ratings by 69 Incumbent Carrier Respondents
|RANK||VENDOR||RECOGNITION||PRICE||PERFORMANCE||QUALITY & RELIABILITY||SERVICE & SUPPORT|
|Source: Heavy Reading|
Riverstone declined to comment for this piece, citing its end-of-quarter quiet period.
— Phil Harvey, Senior Editor, Light Reading