Following the shock of Michael Saylor stepping down as MicroStrategy's CEO to be replaced by the company's President and CFO Phong Le, the man himself has given several interviews to major media outlets justifying his decision.
As Saylor explained in an August 3 interview with Yahoo Finance Live, a Chief Executive Officer's job "is primarily to run a software business." He claims that the decision to make Phong Le CEO was made as the company grew to 2,200 employees and thousands of customers:
“We’ve been working on a succession plan with him for about four years, making him first the Chief Operating Officer and then President about two years ago.”
As the company expands, a full-time CFO is required?
During Phong's tenure as President and CFO, MicroStrategy "entered into a Bitcoin strategy, our balance sheet swelled by billions and billions of dollars, and we decided that the best thing for the business is to bring in a full-time CFO," Andrew Kang, who was appointed in May 2022.
Furthermore, the now-former MicroStrategy CEO stated that this was the impetus for the company to "elevate Phong to be President and CEO and I have been wanting to assume the role of Executive Chairman - so this is my decision that has been many years in the making."
Saylor insisted on remaining involved with the business when describing his future role as Executive Chairman:
“Many people don’t realize I’m the controlling shareholder of the company so I’m the Chair of the Board. I’ll remain the Chair of the Investments Committee that oversees our Bitcoin acquisition strategy and my primary role will be advocacy education and innovation, working on technology leadership opportunities.
Furthermore, in an interview with Fox Business' Charles V Payne, Saylor stated that Phong Le was "a really great operating executive" and that "he'll be even better as President and CEO."
It's worth noting that MicroStrategy's then-CFO Phong highlighted his company's strategy to buy and hold Bitcoin despite market volatility back in January, saying, "so to the extent we have excess cash flows, or we find other ways to raise money, we continue to put it into Bitcoin."
The decision has been criticized.
Meanwhile, Nassim Nicholas Taleb, author of 'The Black Swan,' appeared to mock Saylor, claiming that his resignation was another "nail in the coffin" to the company's strategy of not selling Bitcoin.
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