Robert Moffat, the IBM executive widely thought to have been the company’s next CEO, is finding that out firsthand.
Moffat was placed on leave from IBM on Oct. 19 after he and five other people were arrested for the Galleon insider trading scandal. On Friday, he was “no longer an employee of IBM,” according to memo e-mailed to employees.
Federal authorities say Moffat leaked inside information about IBM and other companies to Galleon, a hedge fund focused on the tech industry. Half a dozen people close to Galleon are accused of illegally pocketing $25 million.
An IBM spokesman told Bloomberg Rod Adkins will replace Moffat as head of the mainframe, server and storage-devices businesses.
Brian Marshall, an analyst at Broadpoint Amtech Inc. also told the news service that although the charges against Moffat are serious, his firing came more quickly than might have been expected.
“Obviously everybody is innocent until proven guilty,” Marshall told Bloomberg.
It’s unclear whether Moffat resigned on his own or was fired. IBM won’t confirm either way. Moffat had worked for IBM for 31 years.