Christos Cotsakos has resigned as chairman, CEO and director of E-Trade, effective immediately. His departure comes days after the online brokerage company issued a gloomy 2003 forecast and follows sharp criticism of Cotsakos' compensation.
Mitchell Caplan was selected by the board of directors to replace Cotsakos as CEO, the company said. Caplan also was elected a director of E-Trade Group and will continue as president of the online brokerage.
The company gave no reason for Cotsakos' stepping down. In a statement issued by E-Trade (ET), Cotsakos said, "I am extremely proud of what we have accomplished over the past seven years and it is with great confidence that I hand the success and momentum to Mitch Caplan to further build on the core strengths of E-Trade."
Last May, Cotsakos agreed to relinquish his salary for the next two years and surrender other benefits in an effort to quell outrage over a compensation package that made him the brokerage industry's top-paid executive.
Cotsakos, E-Trade's CEO since 1996, agreed to a more modest contract 10 days after the company disclosed that it gave him a 2001 pay package valued at about $80 million.
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Gates for security: Microsoft chairman Bill Gates is pledging to continue improvements to security in his company's products, part of a high-stakes campaign to convince large customers that Windows software is safe.
Gates acknowledged that the technology industry must make significant improvements, adding that, "Microsoft has a responsibility to help its customers address these concerns, so they no longer have to choose between security and usability."
As part of the effort, Gates promised that Microsoft (MSFT) will improve support for "smart cards," devices that can replace or augment passwords. A single computer user may need dozens of passwords for e-mail, websites and for connecting to office systems. Most passwords are easy to guess or difficult to remember.
Microsoft's products, especially earlier versions of its Windows operating system and Internet server software, have been long derided by experts for problems that put consumers' information at risk from hackers and viruses.
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More Linux adopters: Fujitsu (FJTSY) and Intel (INTC) have agreed to jointly develop high-end computer servers using the open-source Linux operating system.
Under the deal, the Japanese electronics maker hopes to sell the servers using future versions of Intel processors, aiming for $848 million in worldwide sales by 2006, Tadayasu Sugita, Fujitsu's senior executive vice president, told reporters.
The servers will also run the Windows operating system, he said, but the development of sophisticated Linux-based servers is expected to help spread that operating system's use. Costs for using the free, open-source operating system should also be lower, Sugita said. He did not discuss possible prices for the servers.
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Espionage suspect pleads: A Chinese citizen charged with illegally shipping missile guidance technology to China's military pleaded innocent during an arraignment hearing in federal court.
Qing Chang Jiang, also known as Frank Jiang, was dressed in an orange Santa Clara County Jail uniform. A translator helped him communicate with his lawyer, and he did not speak directly to the judge during the brief hearing.
Jiang, who was arrested Jan. 10, was indicted on one charge of violating U.S. export code. He faces up to 10 years in prison and a $250,000 fine if convicted.
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Satellite takeover drags: Negotiations concerning a possible $3 billion takeover of satellite operator Eutelsat SA are on hold because of doubts about Eutelsat's commitment to the process, a spokeswoman for one suitor said.
The Wall Street Journal reported that Intelsat, which is incorporated in Bermuda but based in Washington, D.C., and PanAmSat had halted their separate talks to acquire Eutelsat after the French company resisted opening up its books.
The Journal characterized the development as a victory for Eutelsat's CEO, Giuliano Berretta, because he opposes shareholders' desire to sell the entire company. Eutelsat's main shareholders include a group of European telecommunications companies.
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Cisco seeks security: Cisco, the No. 1 maker of gear that directs Internet traffic, said it will buy privately held Okena, a security software maker, for about $154 million in a stock deal.
The deal will help strengthen Cisco's presence in the growing network security market, the company said in a release. Cisco (CSCO) stock will be exchanged for all outstanding shares and options of Okena.
AP and Reuters contributed to this report.
