It is a fairly sad state of affairs when your outfit does so badly that you have to use a posting with the Taiwan Stock Exchange to deny rumours that your CEO and president has quit out of shame.
Asustek has had to refute an industry rumour that company CEO and president Jerry Shen had resigned his position on July 1 due to the company’s poor performance.
Rumour mill Digitimes said that Shen had cleaned out his desk because of lacklustre product shipments and higher losses than expected due to exchange rate losses in the second quarter.
Apparently it is normal in the Taiwanese business world for the CEO and Chairman to fall on his sword after a dodgy second quarter. Or if it isn’t, there are always rumours that he or she has done.
Asustek might have had to pipe up about this particular rumour because its stock price was falling faster than the lift in Towering Inferno flick.
In fact the rumour would have been accepted by the great unwashed if Asustek had not made the mistake of saying that “Shen has the full support from the board of directors and the company.” This is what they usually say just before the errant staff member exits the company via the roof.
Not surprisingly, market confidence has not yet been restored and trading in the morning session of the Taiex bourse today saw shares drop.