PDL BioPharma (NDAQ:PDLI) CEO Mark McDade resigned yesterday after a month-long internal investigation into improper personal conduct and breach of fudiciary duty. The investigation was spearheaded by activist investor Daniel Loeb's Third Point who has insisted for months that McDade was behind the company's poor performance. Meanwhile, shareholders clearly applauded the move as shares rose over six percent mid-day.

According to a company press release, "PDL BioPharma, announced that a three month internal investigation of the company's chief executive officer (CEO), Mark McDade, found no credible evidence of improper personal conduct or breach of fudiciary by McDade to corroborate the various allegations investigated. The company also announced that McDade, following the investigation and due to the personal toll created by unsubstantiated rumors and related investigation, he has decided to step down as CEO and a member of the board by the end of 2007."

Loeb's Third Point has been pushing for the executive to leave the company and also proposed a potential sale of the company to unlock value for shareholders. Many shareholders are hoping that now that the executive is out of office, the activist shareholder may have more luck with its goals. If successful, a sale of the company could mean significant returns for shareholders. This makes PDLI a stock worth watching!

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