Features

SANTA CLARA — Palm Inc.’s chief executive, Carl Yankowski, has resigned, the company said Thursday. 

Eric Benhamou, chairman of the Santa Clara-based handheld computer company, will take his place until a permanent replacement is named. 

Yankowski cited the company’s restructuring for his decision. Palm is in the final stages of forming a subsidiary that would focus on the Palm operating system and work independently from the hardware group that makes the handheld devices. 

“With Palm’s transition into two individual businesses almost complete, my role has changed, and it no longer matches my aspirations,” Yankowski said.  

“I leave confident that our separation and solutions strategies, combined with the new leadership at the helm of both businesses, will result in increased shareholder value. It has been an honor to lead Palm.” 

Yankowski did not announce his future plans. 

The announcement comes as Palm is suffering from slow sales and increased competition. The move to form a separate subsidiary, announced in late July, was designed to boost the Santa Clara-based company’s software business. 

Alan Kessler, the former head of Palm’s software group, resigned in mid-August, and David Nagel, the former chief technology officer of AT&T Corp. and president of AT&T Labs, was named the chief executive of the new Palm operating system subsidiary. 

Yankowski took the helm at Palm in December 1999. He was formerly a chief executive of Sony Electronics and Reebok International, and helped oversee the spin-off of Palm from its parent company, 3Com Corp. 

Benhamou, who is also chairman of 3Com, was the networking company’s chief executive from 1990 to 2000, during which time 3Com bought U.S. Robotics and its Palm handheld technology. 

Benhamou, who grew up in France, came to 3Com from Bridge Communications, a networking company he co-founded before it merged with 3Com. 

Palm shares lost 3 cents to $2.27 on the Nasdaq Stock Market before Yankowski’s announcement. The stock was up to $2.32 in the extended session. 

——— 

On the Net: 

http://www.palm.com