SAN JOSE, Calif. Amid a mass exodus of its board, chip maker Silicon Image Inc. on Monday (April 25) afternoon said that David Lee has decided not to stand for re-election to the company's board at the 2005 annual shareholder meeting.
Lee, a founder of Silicon Image (Sunnyvale, Calif.), will continue to serve in his current capacity as an executive officer of the company and the chairman of PanelLink Cinema LLC, a wholly owned subsidiary of the firm. The board has also named Lee as chairman emeritus of Silicon Image.
On Monday morning, Silicon Image announced that it has received resignations from four members of its board, reportedly over the re-nomination of Lee.
Christopher Paisley, chairman of the board and member of the audit, compensation and governance and nominating committees, and David Courtney, chairman of the audit committee and member of the governance and nominating committee, stated that they were resigning due to a disagreement over whether or not Lee should be re-nominated to Silicon Image's board.
Keith McAuliffe, chairman of the compensation committee and member of the audit and governance and nominating committees, stated that he was resigning due to events surrounding the question of whether or not Lee should be re-nominated to the board.
Richard Sanquini, member of the compensation and governance and nominating committees, resigned without stating a reason.
As a result of the resignations, a majority of the board of directors is not "independent" as required by NASDAQ listing requirements. In addition, as a result of the resignations, no directors are serving on the audit committee of the board of directors. NASDAQ listing rules require that the audit committee be comprised of at least three independent directors.
The company claimed it will endeavor to bring itself into compliance with the foregoing NASDAQ listing requirements as soon as practicable.
On Monday, the company also named Darrel Slack, its CFO, as a member of the board of directors effective immediately. It's unclear if Silicon Image complies with NASDAQ rules, however.
The company's board of directors currently has three members Steve Tirado, president and CEO; Slack; and David Hodges, an independent director.