IQE plc (LON:IQE) chief financial officer Phillip Rasmussen died while cycling on holiday in Menorca, Spain.
The back of the 47-year-old’s bike was hit by a car on Sunday morning.
A 25-year-old American man has been arrested on suspicion of drink driving after failing a roadside breath test.
IQE’s chief executive and president, Drew Nelson, said the news has “shocked and distressed” Rasmussen’s colleagues and will be “most deeply felt by Phil's family, who we send our heartfelt condolences to at this terrible time”.
“Phil was a great colleague and an accomplished CFO,” he said.
“He made the role his own, contributing so much over his 10 years with us to IQE's current strength; to the detailed and principled way we do things; to the potential we see before us as a firm."
He added: “We will do everything we possibly can to preserve his legacy at IQE and continue with the shining example he has set for all of us."
Godfrey Ainsworth, currently non-executive chairman, will become executive chairman. He will provide oversight support on an interim basis to the finance team headed by group finance director, Neil Rummings.