Thursday, March 23, 2006

Rambus (Nasdaq:RMBS) strange resignation

Rambus (Nasdaq:RMBS) experienced a strange resignation. Dr. Mark Pinto resigned from Rambus Board of directors with less than one-month service. A conflict of interest developed with his senior position at Applied Materials (Nasdaq:AMAT). You would think that corporate governance procedures and common sense should be able to stand up for at least a month. Both companies are at fault. The lesson is when you appoint a director from the industry ensure that he or she will be truly independent. Something happened and the big dog AMAT had to bark Dr Pinto home. How independent could he have been?