SiliconBeat

AP Pharma, the Redwood City specialty pharmaceutical maker, saidin a press release Michael O’Connell, its chief operating and financial officer, will leave the company Jan. 18, or the end of this week. A 15-year veteran with the company, O’Connell originally joined the company as its CFO. In 2000, he was named chief executive officer, serving as CEO until departing in October 2006 on a medical leave. O’Connell rejoined the company in the middle of last year when he took on his current duties.

The terse press release announcing the move offered no reasons why O’Connell was leaving, nor did it included any of the typical words of praise or thanks from either the company or O’Connell.

The release did take pains to note that O’Connell “will be entitled to the benefits of
a retention agreement that are payable due to his not being reappointed to the position of President and Chief Executive Officer” when he returned to the company last year.

The company called a special shareholders meeting in December in order to get shareholder approval for approve a new “”2007 Equity Incentive Plan” with 3 million shares reserved to be issued under it, because the exercise of most of its outstanding options as of October 31, was $8.96 per share, “”so far underwater when compared to our current market share prices that these options are basically ineffective in providing any meaningful incentive value.”

Both proposals passed.