Joe Galli Quits Amazon to Be VerticalNet CEO
The restless Joseph Galli is trading in books and compact disks for backhoes and organic brown rice syrup -- and a pay package estimated at around $25 million.</br></br>After a tumultuous 13 months in the No. 2 spot at the consumer Internet retailer Amazon.com Inc., Mr. Galli is moving on to the job of chief executive at VerticalNet, a business-to-business online exchange based in Horsham, Pa. Mr. Galli, who was president and chief operating officer at Amazon, succeeds Mark Walsh, who will become VerticalNet's chairman.</br></br>Mr. Galli's departure comes at a difficult time for Amazon. The Seattle-based online merchant has come under fire from Wall Street critics for its continuing losses, heavy debt load and dwindling cash reserves. While Amazon has said it has plenty of cash, the failure of a growing number of Internet retailers, including clothing retailer Boo.com Group Ltd. and toy seller Toysmart.com Inc., has reduced the patience of some investors. Amazon shares have fallen sharply from a 52-week high of $112.375. Yesterday, they traded at $37.625, down $1.125, as of 4 p.m. on the Nasdaq Stock Market.</br></br>Both Jeff Bezos, Amazon's founder, chairman and CEO, and Mr. Galli, who is 42 years old, put the best face on Mr. Galli's decision to leave. "There are only good feelings" between them, Mr. Bezos said. "I was happy to be a good reference for Joe."</br></br>Mr. Galli, for his part, said he relished the opportunity to become CEO of a high-flying Internet company and to be closer to his children, who live in Baltimore. Mr. Galli added that Amazon was a "great adventure" and that he learned a great deal from Mr. Bezos.