Iomega Chief Executive Officer Werner Heid has resigned, following discussions with the company's board of directors, the company said Friday.

Heid, who had run the struggling storage company since 2001, will be replaced by the chairman of Iomega's board of directors, Stephen David, "on an interim basis," the company said. No specific reason was given for Heid's departure.

Iomega expects to pay its former CEO severance payments of up to approximately $950,000, the company said in US Securities and Exchange Commission filings.

A former Hewlett-Packard executive, Heid also served in senior management roles at multimedia projector companies Proxima and InFocus.