Hewlett-Packard's Chief Steps Down, Citing Board Resistance

[David Farber <dave () farber net>]

February 9, 2005

Hewlett-Packard's Chief Steps Down, Citing Board Resistance
 By GARY RIVLIN 
 

 arleton S. Fiorina, perhaps the most powerful woman working in corporate
America, stepped down as the chief executive officer of the giant computer
maker Hewlett-Packard this morning.

 Ms. Fiorina ³was asked to resign due to differences in strategies between
Carly and the board,² said a company spokesman, Michael Moeller.

 The announcement brings to a close a rocky tenure for Ms. Fiorina, who
spearheaded a controversial merger with the computer maker Compaq after her
appointment in 1999.

 ³While I regret the board and I have differences about how to execute HP¹s
strategy, I respect their decision,² Ms. Fiorina said in a statement. ³HP is
a great company and I wish all the people of HP much success in the future.²

 Robert P. Wayman,Hewlett-Packard¹s chief financial officer and a 36-year
veteran of the company, was named c.e.o. on an interim basis and was
appointed to the board of directors.

 The decision comes after a rocky six months for Hewlett. Last August, the
company missed its financial forecasts for the company¹s third quarter,
sending shares tumbling. The company¹s fourth quarter was in line with
expectations but so great was the call on Ms. Fiorina to break up the
company that she acknowledged in December, at a meeting with Wall Street
analysts, that she had three times discussed a break-up with the Hewlett
board but ultimately decided against it.

 Wall Street analysts who follow Hewlett, led by Steven Milunovich, a
Merrill Lynch technology analyst, have argued that the company would be
worth more to shareholders if it spun out its lucrative printing and imaging
business, which account for more than three quarters of Hewlett¹s revenues.
³There are no plans to breakup the company,¹¹ Mr. Moeller said.

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