Key executives plan to leave Netscape

Several senior executives are planning to leave Netscape Communications Corp.'s Web service, posing potential problems for new owner America Online Inc.

Mike Homer, general manager in charge of Netscape's (Nasdaq:NSCP) Netcenter unit, is expected to announce Wednesday that he will take a six-week sabbatical. He said he expects to look for other opportunities inside AOL (NYSE:AOL) when he returns, although several people close to the situation don't expect him to stay on.

Other major executives leaving Netcenter within the next few months, according to Netscape, include Maria Wilhelm, senior vice president of programming, who will take a post running AOL's Los Angeles-based advanced-media units. Jennifer Bailey, Netcenter's senior vice president of strategic development, is leaving the company altogether.

So is Jeff Treuhaft, Netcenter's director of product marketing; and Andy Volkmann, its director of finance.

Pursuing other opportunities
The departing Netcenter managers are in addition to several executives in nonoperational posts who have decided to leave since the takeover, and about 425 people laid off by AOL after the completion of the $10.2 billion deal in March.

AOL referred questions about the departures to a Netscape spokeswoman, who noted that about 94% of the people offered a job by AOL took it. She also noted that many of the departures reflect managers' wealth from stock options and an array of other job opportunities in booming Silicon Valley.

Whatever the causes, the departures could affect the morale of the remaining employees, analysts said. Finding replacements also may take time.

"Whether such changes will hurt Netscape in the long run depends on how AOL manages the combined organization, although it is certainly better to clear these things up earlier than later," said Lise Buyer, a technology analyst at Credit Suisse First Boston.

Discovering new interests
Jim Barksdale, Netscape's chief executive officer, had already announced plans to leave. In an interview, Barksdale said he is moving to Aspen, Colo., having put his multimillion-dollar Spanish-style home in Palo Alto, Calif., on the market. He plans to work on an investment venture aimed at Silicon Valley Internet start-ups, funded in part from his more than $730 million stake in AOL. He also plans to lobby on public-policy issues as an AOL board member, work for a variety of charities and raise money for presidential aspirant George W. Bush.

Homer's decision to take time off from running Netcenter, which he confirmed in an interview Tuesday, comes only weeks after it was announced that he would stay on in that key post. He was recently listed in an internal organizational chart called "The New AOL Organization."

Homer, 41 years old, said the sabbatical was spurred in part because he and his wife are expecting their first child. He declined to comment on his change of heart about the Netcenter post.

Other people leaving the company said they were motivated by other opportunities. Rosanne Siino, vice president of corporate communications, said she is leaving to work with a group of Web start-ups but will also consult with AOL. Roberta Katz, senior vice president and general counsel, who coordinated Netscape's involvement in the federal government's trial against Microsoft Corp., is looking into possibly heading another Internet company. And Peter Harter, Netscape's global public-policy counsel, will move to GoodNoise Corp., a Redwood City, Calif., concern that allows users to download music over the Web.

"Like a lot of people at Netscape, I wanted to make a change ... even though we have had a great run," said Harter, who considered a range of jobs, including moving to AOL rival At Home Corp. "All good things come to an end and that is what makes you remember them as good."

Barksdale is equally excited about his new prospects, especially working with new Internet companies. People close to the situation say he is discussing the new investment venture with two other departing Netscape executives: J. Quincy Smith, director of investor relations, and Peter Currie, chief administrative officer.

"I think it will be a lot of fun," said Barksdale. "My overriding feeling is that I am pleased how this has all turned out."

Not all of Netscape's top management is departing. Several now occupy top jobs at AOL, including the most prominent Netscaper to stay, co-founder Marc Andreessen. He is now chief technology officer of AOL and splits his time between Netscape and AOL's headquarters in Dulles, Va.

"I've got my office, I've got my parking badge and I ordered my office furniture here, so I am definitely staying," joked Andreessen, noting that he and many Netscapers remaining are excited about the company's prospects under AOL. "The opportunities are breathtaking."