Sirius XM Radio said Thursday that Gary Parsons has resigned as chairman and a member of the board and will be succeeded by Los Angeles Times publisher and CEO Eddy W. Hartenstein as non-executive chairman.
Parsons founded XM Satellite Radio and was its chairman before the company's merger with Sirius. His replacement with an outside director brings the company in line with Nasdaq Stock Market rules on independent board members.
In a statement issued by the company, Parsons said "now is the right time to step aside," following the merger of Sirius and XM. He said he was proud "of everything that has been accomplished in satellite radio."
Parsons said the combined company has begun to generate cash flow and improve its financial health despite the economic downturn. He did not indicate any future plans.
CEO Mel Karmazin said Parsons was a pioneer who steered the company in the right direction including the merger.
Hartenstein was a director of XM Satellite Radio Holdings Inc. and has been served on the Sirius XM board since July 2008. The former DirecTV chairman and CEO became the Times' publisher in August 2008.
Sirius shares rose about 3 cents to close at 66 cents.