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Thursday 22 September 2011

Hewlett Packard names Meg Whitman CEO

SAN FRANCISCO: Hewlett-Packard Co named former eBay Inc Chief Executive Meg Whitman as its new president and CEO, replacing unpopular leader Leo Apotheker at the helm of the largest US technology company.

The move, effective immediately, confirmed earlier reports on the impending change.

"We are at a critical moment and we need renewed leadership to successfully implement our strategy and take advantage of the market opportunities ahead," said Ray Lane, who has moved from non-executive chairman to executive chairman of HP's board.Apotheker, who became CEO in November, rankled investors by lowering sales forecasts three times and making jarring strategy shifts. Before yesterday, when Bloomberg reported that he may be fired, the company's stock had plunged 47 percent on his watch. "Investor exasperation" with management is at its highest in more than a decade, according to Toni Sacconaghi, an analyst at Sanford C. Bernstein & Co.Directors had steadily grown frustrated with Mr. Apotheker as he had been unable to make H-P's quarterly numbers for three quarters, people familiar with the matter said. The CEO also tended to consult only a few people, notably Mr. Lane and strategy chief Shane Robison, these people said. For instance, Mr. Apotheker didn't inform H-P's PC head Todd Bradley about plans to potentially spin off that unit until days before that decision was announced publicly, Mr. Bradley and others have said.Better choices would include HP enterprise chief Dave Donatelli and PC head Todd Bradley, two names that had also made the rounds in Silicon Valley for the top job after Mark Hurd's ouster in August 2010, he added.

On a more personal level, opponents on the campaign trail last year raised questions about her fierce temper and imperious manner with employees, and even about her integrity after it emerged that the wealthy former CEO had employed an illegal alien maid.

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