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Asustek Denies Rumored Departure of CEO

Asustek Computer on Thursday made a rare public denial of a stock market rumor by saying its CEO is not leaving the company and that he retains the strong support of its board of directors.

The company "categorically rejects" the "market rumor that there will be any change with CEO Jerry Shen," Asustek said in a statement to the Taiwan Stock Exchange.

The statement went on to say that Shen is leading the company through recent economic turbulence in Europe with the falling value of the euro.

Europe has been one of Asustek's biggest markets for the past few years. In the fourth quarter of last year, for example, Europe accounted for 51 percent of Asustek's sales, while it accounted for 41 percent of sales in the first quarter, according to financial records from the company.

The rumor was passed along on a newswire system operated by Systex Corporation, which provides information systems and terminals to stock market traders. The rumors purport that Shen may be facing pressure due to the fall in the value of the euro and its impact on the company's second quarter financial results.

The CEO has recently led Asustek through a major reorganization, in which its manufacturing operations have been spun-off to focus on building Asustek's brand of electronics products. The company won global acclaim for pioneering the netbook phenomenon a few years ago, and announced its first tablet PCs at Computex last month.

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