Overstock’s CEO resigns after he gets politically involved
In a letter to shareholders, Patrick Byrne, CEO of American internet retailer, said he would leave his position helming the company, as well as his position on the board, effective Thursday.
On 12th August, Byrne shared in a Fox News report that he had been involved in the Russia investigation and Hillary Clinton email controversy during the 2016 U.S. presidential election. He blurted out that he had assisted the Justice Department in uncovering documents related to both the investigation and the scandal and gained public attention. The sharing didn’t stop here. Byrne further revealed that he was romantically involved with Maria Butina, a suspected Russian spy who is now in jail for failing to register with the U.S. government to work as a foreign agent.
All this information he shared impacted the stocks of the company negatively as shares fell over 30 percent in the days following the exposé. Following these events, Byrne abruptly stepped down from his role.
In his resignation letter he wrote, “The news that I shared is bubbling (however haphazardly) into the public. Thus, while I believe that I did what was necessary for the good of the country, for the good of the firm, I am in the sad position of having to sever ties with Overstock, both as CEO and board member.''
It is interesting to see how the personal lives of leaders can impact the business of a company. Once associated with a brand, leaders, especially at C-suite level have to be cautious about what they say in public as often they are not only representing themselves but their brand. While if we think from an individual’s perspective, they get tied-up and can't speak their minds out.
Overstock had already been going up and down the roller coaster with the Bitcoin situation. When the Bitcoin’s popularity was at its peak, in late 2017 and early 2018, Overstock’s share price surged to an all-time high of $84. But with Bitcoin’s epic fall, quickly plunged to below $10 as of June this year.
The company also launched tZero in 2018 through its blockchain subsidiary, Medici Ventures, and raised over $130 Mn from a selected investor pool in an initial coin offering last summer. Even with an ongoing SEC investigation, Overstock is set to make tZero trading available to non-accredited investors this month. However, the launch has been overshadowed by the attention Byrne has brought to the company.
How the remaining leaders of Overstock shift the attention of the public back to tZero’s launch and gain back market share, will determine the company’s future.
Image credits: Forbes