AllThingsD » Cathie Lesjak

HP CEO Whitman Earned One Dollar Plus $16 Million in 2011

Arik Hesseldahl — Fri, 03 Feb 2012 15:27:02 +0000

Hewlett-Packard released its annual proxy statement this morning, which, among other things, gives a look at what its top five executives made last year. Here’s the rundown:

CEO Meg Whitman, who upon becoming CEO agreed to take an annual base salary of $1, received more than $16 million worth of stock awards. Add on another $372,598 in other compensation, and the total value of her package was north of $16.5 million. Much of that other compensation stemmed from the period when Whitman was a director on HP’s board, and before she was CEO.

Under her employment contract, Whitman received an option to purchase 1.9 million shares of HP stock at a strike price equal to the value of the share price on the date of the grant, and subject to vesting requirements over time. As of today, 1.9 million shares would be worth almost $55 million. Whitman, the filing says, was the only one among the company’s named executive officers to receive an options award during 2011.

The filing also shows that CFO Cathie Lesjak made a base salary of $825,000, plus $9.3 million in stock-based compensation, $679,000 in incentive pay and $101,500 in other compensation, for a total of more than $11 million.

Todd Bradley, executive vice president and head of the Personal Systems Group, the division that HP briefly considered spinning out last year, made a base salary of $850,000, plus $9.3 million in stock-based compensation. He received $464,457 in incentive pay, plus $105,000 in other compensation, for a total just shy of $10.7 million.

Vyomesh “VJ” Joshi, the executive president and head of the Imaging and Printing Group, got an $850,000 salary, too, and nearly $8 million in stock awards, plus $638,355 in incentive pay, for a total of $9.8 million.

Shane Robison, the former chief strategy officer who retired last year, received a base salary of $781,250, plus stock awards worth $7.6 million and $606,506 in incentive pay, for a total of $9 million.

Finally, we have a full accounting of what former CEO Léo Apotheker made for his 11 months of service at HP’s helm. The full amount was $30.4 million. The precise amount had been the subject of some guesswork based on less-than-complete HP filings made around the time of Apotheker’s departure. The filings netted for HP a dubious award for “Worst Footnote of the Year” over at Morningstar’s Footnoted blog. My best guess had been in the $28 million to $33 million range.

Apotheker’s compensation breaks down like so:

$1,152,770 in base salary.
A $6.4 million bonus, of which $4 million was a signing bonus when he joined HP, and $2.4 million paid under the terms of his separation agreement.
Stock awards worth $17,660,759.
$5.2 million in “other compensation.” Within that was $2.9 million in relocation expenses related to Apotheker’s move from France to California and back; $1.7 million in “miscellaneous,” the majority of which, as explained in a footnote, was a “reimbursement for foregone non-competition payments that would have otherwise been payable by his former employer,” which refers to the software company SAP, where Apotheker was co-CEO.
Another $25,000 representing his personal use of HP aircraft.

Yahoo's Bartz Also Gets Fired From Fortune's Powerful Women List, While HP's Whitman Gets Hired

Kara Swisher — Thu, 29 Sep 2011 19:48:47 +0000

Today, Fortune magazine released its annual “50 Most Powerful Women in Business” and, as usual, it had its share of tech execs on the list.

And off it, too — first and foremost being ousted Yahoo CEO Carol Bartz, who was jacked completely from her 2010 No. 10 rank. She was No. 8 in 2009.

In her place: Newly designated Hewlett-Packard CEO and former eBay CEO Meg Whitman grabbed the No. 9 spot.

Also on the list: fast-rising IBM sales, marketing and strategy exec Ginni Rometty at No. 7; Xerox CEO Ursula Burns at No. 8; Oracle President and CFO Safra Catz at No. 11; Facebook COO Sheryl Sandberg at No. 12; Google execs Susan Wojcicki and Marissa Mayer at No. 28 and No. 38, respectively; IBM North America GM Bridget Van Kralingen at No. 39; and Best Buy Americas President Shari Ballard.

Catz was the highest paid of the group, with $42.1 million in total 2010 compensation.

And also taken off this year: 2010 No. 14, HP’s Ann Livermore, who left her top job there, but still is on the tech giant’s board; 2010 No. 28 Cathie Lesjak, CFO of HP; 2010 No. 44 Lorrie Norrington, a former president at eBay; and Apple’s communications head Katie Cotton (she was robbed!), who was No. 50 in 2010.

The new list will be in the magazine on Monday, which is when a related conference will take place in Southern California. (I will also be in attendance there, along with other less powerful ladies.)

Whitman is scheduled to speak at the conference in the afternoon on Tuesday, October 4.

The Meg Whitman Era at HP Begins With a Conference Call (Audio)

Arik Hesseldahl — Thu, 22 Sep 2011 22:51:35 +0000

And just like that, Hewlett-Packard, one of the world’s biggest technology companies and a Silicon Valley and American corporate icon, has a new CEO: Meg Whitman.

Whitman made her first pronouncements to the public and to the HP rank and file on a conference call today, along with Chairman — newly named executive chairman — Ray Lane. I recorded the call and pulled out some highlights you can hear below, courtesy of SoundCloud.

The decision to oust now former CEO Léo Apotheker was made after the board of directors observed “operational weaknesses” in his management. “It became increasingly clear that we needed new leadership to focus on operating our business more effectively to meet the challenges of today’s environment,” Lane said. “The board believes that the job of CEO requires additional attributes to successfully execute on the company’s strategic evolution.”

Whitman admitted that HP hasn’t been delivering the kind of results that investors have come to expect. “We’re not happy about it,” she said, promising that HP will have no higher priority than to get HP’s operations back on track. Her first public comments as CEO are in the audio clip below:

Meg Whitman’s First Public Comments as HP CEO by ahess247

The news of Whitman’s hiring as the new CEO obfuscated some comments from CFO Cathie Lesjak, who warned that HP may have another tough quarterly earnings report ahead. Blaming soft market conditions in Europe and from government agencies, Lesjak said HP will likely meet its per-share guidance issued on Aug. 18, non-GAAP earnings of $1.12 to $1.16 a share. However, she said she feels “less certainty with regard to revenue,” specifically around hardware sales. HP had forecast revenues in the range of $32.1 billion to $32.5 billion.

I’ve talked with sources familiar with retail PC sales, who tell me that the back-to-school season was pretty good in terms of the number of machines sold, but that PC manufacturers, including HP, had to slash prices aggressively to keep consumers interested and buying. That may turn out to be a contributing factor.

Another key factor will be commercial PC sales. Since HP started talking about spinning off its PC business on Aug. 18, some of its commercial customers have been acting on their uncertainty by holding back on new deals or buying from other vendors like Dell. CIOs hate uncertainty, and HP has been playing defense with many of its biggest customers since the announcement, seeking to reassure them that they can still do business with HP.

Whitman’s hiring has brought a lot of criticism that she doesn’t have sufficient experience running a large, enterprise-focused technology company. Lane defended the choice by saying that during her years running eBay, she was a big buyer of enterprise technology and that the experience should serve her well.

Raydefendsmeg by ahess247

Why not conduct an extensive search, considering candidates from both inside and out? Toni Sacconaghi, author of last week’s stinging research report about “exasperated” HP investors, asked about that. The implication was that HP’s board of directors had acted impulsively in hiring Apotheker last year and was doing so again in hiring Whitman. Lane reminded Sacconaghi that HP’s board has eight new members since those days, so it’s not the same group of people involved with the Hurd resignation and the Apotheker hiring. Hear his answer below:

Why no search at HP? by ahess247

And yet, despite having sent Apotheker to the exit, HP still intends to follow through, in broad brushstrokes, with the strategy he laid out. HP is still studying what to do with its Personal Systems Group, the unit that sells PCs to consumers and businesses. All options — a spinoff or no action at all — are still on the table. But as Whitman says here, in response to a question from Keith Bachman of BMO Capital, “That decision is not going to get better with age,” so the sooner it’s done, the better.

Decisionpsc by ahess247

Lane, asked by analyst Shannon Cross of Cross Research about the timeline of the decision to let Apotheker go, said the decision wasn’t made suddenly, but over the course of the last few quarters. After missing earnings forecasts for two quarters in a row, and with the communications mess that occurred on Aug. 18, it became clear, Lane said, that Léo had to go. Hear him explain it below:

Ray Lane: Help surround or replace? by ahess247

HP Analysts Like Losing Léo, Not Sold on Whitman as CEO

Arik Hesseldahl — Thu, 22 Sep 2011 16:59:29 +0000

So what do HP’s biggest drama critics — I mean analysts — think about the latest shakeup to hit that company?

It’s a mixed bag. While they all seem to agree that HP’s board is right to push out CEO Léo Apotheker, especially in light of the stock performance, a confused strategy and a jarring change in emphasis, none seem ready to endorse the ascendance of Meg Whitman, the former eBay CEO and current HP director, to that company’s top job. Yet like it or not, the HP board meeting that will make it all official is underway, and as AllThingsD has reported, Meg Whitman will be named HP’s CEO at the close of markets today.

Toni Sacconaghi of SanfordBernstein, the author of a widely circulated note last week describing how “exasperated” HP investors are, weighed in again. “We are not surprised by HP’s stock’s reaction yesterday, given that our conversations with shareholders and investors over the past month revealed a level of exasperation that we have not seen directed at HP or any other company in our universe in our 13 years following the sector,” he wrote in a note today.

He also slammed HP’s board. “Our conversations with major shareholders also indicate that they have been disgruntled with the board, given it has made and approved a series of decisions” — including the ouster of the prior CEO Mark Hurd, the Autonomy deal, the premature announcement of the PC-spinout — “that many shareholders believe were poor decisions and misaligned with their interests,” he wrote.

Nor is he a fan of the Whitman hiring. HP needs to search far and wide and also internally for another CEO, Sacconaghi says. “We would view any decision not to conduct a comprehensive search of internal and external candidates for a permanent CEO role as unsatisfactory and unnecessarily hasty,” he wrote. “We also believe that shareholder reaction to Whitman as a permanent CEO would be mixed.” He also thinks CFO Cathie Lesjak, notable for filling in as interim CEO during the Hurd-to-Apotheker transition, may be leaving.

Shaw Wu of Sterne Agee is pretty much in agreement with Sacconaghi. “Given the disappointing financial performance over the last few quarters and some questionable decision making including the high purchase price of Autonomy, handling of the spinoff of its PC operation, and abrupt shutdown of its webOS hardware business, we are frankly not surprised that a change is being considered,” he wrote in a note to clients today. “So far, investors and even some customers we have talked to don’t seem confident in where HPQ is heading so a change is likely needed.”

But he’s not sold on Whitman. “While we believe she has proven to be a very capable manager helping grow eBay from a start-up into one of the largest internet companies, we think an ideal candidate for HPQ should have extensive experience in the enterprise market. In addition, we believe expertise in supply chain management would be helpful as well.” He goes on to name a handful of insiders and outsiders he’d consider possible successors: Dave Donatelli, who runs HP’s enterprise business; Todd Bradley, who runs the personal systems group and would be a likely CEO of that unit if it’s spun out; Steve Mills, who runs software and hardware at IBM; and Gary Moore, the COO of Cisco Systems.

Wu also says it might be a good idea for HP to keep its PC unit after all is said and done. “We estimate the business generates $2 billion in operating income per year and is the second most profitable behind Apple,” he wrote. Also the PC business isn’t so bad when you think of it as being one and the same with the tablet market. He maintained a neutral rating on HP for now.

Lou Miscioscia of Collins Stewart isn’t encouraged by the shake-up, either. Many of HP’s problems aren’t necessarily Apotheker’s fault, he says in a note to clients issued today. And he’s not sold on Whitman, arguing that she’s never run so large a company as HP and has never run one focused on the enterprise before. He maintained a neutral rating.

And while a post-Apotheker HP may undo some of his decisions, like spinning off the PC business, one thing it probably can’t do is walk away from its $10 billion purchase of Autonomy Software, says Jeffries and Co. analyst Peter Misek. Corporate takeovers are governed by strict laws in the U.K., making it nearly impossible for HP to pull out of the deal now. He rates HP shares a buy.

More Securities Lawyers Circling HP

Arik Hesseldahl — Fri, 16 Sep 2011 15:00:31 +0000

One lawsuit has already been filed and more may be coming, as the number of securities law firms throwing their hats into the legal ring around Hewlett-Packard increases.

In the wake of a proposed class action lawsuit, filed Sept. 13 in the U.S. District Court for Central California (complaint below), four more law firms have said they are launching their own investigations of HP.

The latest came this morning, as Klayman & Toskes, a securities law firm, said it was investigating claims on behalf of shareholders who might be eligible to join the proposed class action. The other three firms that have made similar announcements are Holzer Holzer & Fistel; the Briscoe Law Firm, PLLC; and Powers Taylor, LLP.

In the suit filed Tuesday, an HP shareholder named Richard Gammel alleged that comments by CEO Léo Apotheker — concerning the company’s earnings expectations, the importance of its personal computer business and plans to move ahead with devices running the webOS operating system — gave a vastly different indication of actions HP took on Aug. 18, when it killed the webOS hardware business and announced plans to spin off the PC business and spend $10 billion to acquire Autonomy. Gammel is being represented by Robbins Geller Rudman & Dowd.

During a period starting in November 2010 and ending on August 18, the Gammel suit argues that HP highlighted its ownership of the webOS hardware and software as a key differentiating factor against competitors — “a defining aspect of the company’s value proposition” — and that HP represented to shareholders that webOS, as the “crown jewel” obtained in last year’s $1.2 billion acquisition of Palm, was going to play an integral role in HP’s strategy going forward.

Of course we all know what happened after August 18. HP shares cratered in the days that followed, and traded below $23 a share, down from about $32 days before.

Lawsuits by shareholders are a fairly common response to sudden price drops, especially when they result from the kind of jarring shift in strategic direction that HP decided to make. The trick — and it’s a tough one — is proving that Apotheker and other HP executives made public statements about the state of the business, knowing they were false. And many lawsuits like this get dismissed. HP will have the advantage of being able to argue that Palm was acquired under the previous CEO, Mark Hurd, now a president at Oracle, and that the webOS business wasn’t taking off as originally hoped. We know this much is true, as TouchPad sales proved to be lousy before a drastic price cut spurred demand.

gammelHPcomplaint

HP CFO Cathie Lesjak on webOS

Voices — Fri, 19 Aug 2011 05:00:51 +0000

Our intention was to solidify webOS as the clear No. 2 platform for tablets, but with such a young ecosystem and poorly received hardware we were unable to achieve our target.

Hewlett-Packard CFO Cathie Lesjak

HP Names Ex-SAP Chief Apotheker as CEO

John Paczkowski — Thu, 30 Sep 2010 20:20:41 +0000

Hewlett-Packard (HPQ) has finally named a new CEO, and, despite our prediction that it would choose an internal candidate like Todd Bradley or Anne Livermore, the company instead looked to an outsider.

On Thursday afternoon, HP named Léo Apotheker–former CEO of SAP (SAP)–as its new chief executive officer.

And, in a jab at Oracle–which hired former HP CEO Mark Hurd after his ouster–it tapped Ray Lane, a former president and COO at Oracle (ORCL), as its non-executive chairman of the board. Lane is currently a managing partner at VC powerhouse Kleiner Perkins Caufield & Byers.

Interesting choices. Particularly Apotheker, who was pushed out of SAP this past February after less than a year on the job. (He served as co-CEO with Henning Kagermann for a few years prior.)

Cathie Lesjak, who has been serving as interim CEO, will return to her previous role of CFO on November 1, when the new appointments become effective.

In a statement announcing the move, HP board member Robert Ryan said the company chose to hire Apotheker because he’s “a strategic thinker with a passion for technology, wide-reaching global experience, and proven operational discipline.”

At $40.80, HP shares are down about three percent on the news. Seems investors aren’t too keen on Apotheker’s appointment, even after weeks of leadership uncertainty.

Here’s the release:

Léo Apotheker Named CEO and President of HP

Ray Lane Joins HP as Non-Executive Chairman of the Board

PALO ALTO, Calif., Sept. 30, 2010–The Board of Directors of HP today announced the election of Léo Apotheker as Chief Executive Officer and President. Apotheker, who previously served as CEO of SAP, will also join HP’s Board of Directors. The Board also elected Ray Lane, Managing Partner at Kleiner Perkins Caufield & Byers, as a new member of the Board and designated him as non- executive Chairman. Both elections are effective November 1.

During Apotheker’s more than 20 years at SAP, he was a driving force in making it the largest business software applications company in the world. Apotheker helped develop and implement the most significant changes in SAP history. During his tenure, he transformed R&D and technology platforms and expanded business models and customer segments. Apotheker also helped lead SAP to 18 consecutive quarters of double-digit software revenue growth between 2004 and 2009.

Lane has served on the Board of Directors of more than 20 public and private companies and joined Kleiner Perkins in 2000. Previously, he served as President and Chief Operating Officer at Oracle Corporation. Earlier in his career, Lane also worked at Booz Allen Hamilton, EDS and IBM.

“Léo is a strategic thinker with a passion for technology, wide-reaching global experience and proven operational discipline–exactly what we were looking for in a CEO,” said Robert Ryan, lead independent director of the Board. “After more than two decades in the industry, he has a strong track record of driving technological innovation, building customer relationships and developing world- class teams.”

Ryan continued, “Léo has been a leader in anticipating the transformation taking place in our industry, and we believe he is uniquely positioned to help accelerate HP’s strategy. He has demonstrated success in the U.S. market and also has vast international experience – which will be a major asset as HP continues to expand globally, particularly in high-growth emerging markets. HP has the right assets and market positions, and now we have the best team to realize the company’s enormous potential.”

“HP has a powerful mix of businesses, products and services, one of the most innovative cultures in the industry, and an accomplished management team who have played a critical role in its success,” said Apotheker. “I am deeply honored to be joining the more than 300,000 dedicated HP employees.”

Apotheker continued, “Given HP’s diversified products and services, its financial strength, and its leadership position across markets, no other company is as well positioned to drive – and profit from – the revolutionary changes under way in the marketplace. As we move forward, HP will continue to be a valued partner with our customers as well as a fierce competitor. I look forward to working with the outstanding people at HP to write the next chapter in the company’s long and proud history.”

“I am excited to join the Board of this pioneering company, and look forward to working closely with Léo – and the rest of the Board and senior management team – as they capitalize on the changes taking place across the industry,” Lane said. “I have known and admired Léo for almost 20 years. He is ideally suited to build on HP’s strong foundation, leverage its many assets and keep the company at the forefront of innovation.”

Apotheker will succeed Cathie Lesjak, who was named interim CEO in August 2010. Lesjak, who has served as HP’s Chief Financial Officer since January 2007, remains CFO and continues to serve as a member of the Executive Council. Ryan said, “Cathie is and will continue to be an important part of HP. We are extremely fortunate to have one of the deepest, most talented senior management teams in the industry and to have someone of Cathie’s caliber lead HP during this interim period. On behalf of the entire Board, I would like to thank Cathie and our senior management team for maintaining HP’s focus on serving customers and continuing to execute our strategy.”

HP Says Many Good Candidates Are Willing to Follow Hurd

John Paczkowski — Wed, 08 Sep 2010 21:51:25 +0000

Hewlett-Packard’s search for a CEO to replace Mark Hurd is going better than expected. That’s the word from interim CEO Cathie Lesjak, who says the company’s executive search committee is knee-deep in a good pool of applicants. “We’ve been very pleased with the selection of candidates,” she said at the 2010 Citi Technology Conference today. “There was some worry that there wouldn’t be that many. That certainly hasn’t been the issue.”

A well-timed bit of reassurance for addled HP (HPQ) investors who can’t be feeling too good about Hurd’s new gig with HP partner and rival Oracle (ORCL).

Asked about the state of HP’s relationship with Oracle, Lesjak conceded that it was “strained,” but said she expects the two companies to patch things up sooner of later. “At the end of the day business will prevail,” she said. “Ultimately we’ll go back to being good partners.”

Hard to imagine, given the words the two companies have exchanged recently and their developing rivalry in the servers and storage systems market. We’ll see, I suppose.

Mark Hurd "Left HP in Great Shape" With "Winning Strategy"

John Paczkowski — Thu, 19 Aug 2010 21:15:13 +0000

How’s HP doing without former CEO Mark Hurd?

Just fine, apparently. Asked what sort of state Hurd left the company in during a media call Thursday afternoon, Cathie Lesjak, Hewlett Packard interim CEO, said it was good. “Mark Hurd left our organization with an extremely strong strategy and a talented management team that’s excited to execute on it,” she said. “He left HP in great shape. We think of ourselves as a team on a mission….When you have a winning strategy, I don’t see motivation to change it. It’s something we’ve been building for the last few years. It’s a well-thought-out strategy that’s working very well for us.”

Meanwhile …

Hurd on the Street: HP CEO Resigns After Sexual Harassment Inquiry

John Paczkowski — Fri, 06 Aug 2010 20:12:30 +0000

HP CEO Mark Hurd once advised, “Anytime you take a job, think to yourself what it would be like on your last day on the job, and what you’d like to say about your tenure on that day, and work your way backward.”

Bet he didn’t envision his last day quite this way.

Hewlett-Packard announced today that Hurd has resigned following an investigation into allegations of sexual harassment against him by a former company contractor. HP says the investigation found no violation of HP’s sexual harassment policy, though it did determine there were violations of its Standards of Business Conduct.

According to HP General Counsel Michael Holston, some inaccurate expense reports of Hurd’s revealed an undisclosed “close personal relationship” with a marketing contractor and “demonstrated a profound lack of judgment.”

So profound that Hurd couldn’t be allowed to remain in his position.

In a statement, Hurd said, “As the investigation progressed, I realized there were instances in which I did not live up to the standards and principles of trust, respect and integrity that I have espoused at HP and which have guided me throughout my career. After a number of discussions with members of the board, I will move aside and the board will search for new leadership. This is a painful decision for me to make after five years at HP, but I believe it would be difficult for me to continue as an effective leader at HP and I believe this is the only decision the board and I could make at this time. I want to stress that this in no way reflects on the operating performance or financial integrity of HP.”

Hurd’s resignation is effective immediately. He’s to be replaced on an interim basis by CFO and 24-year HP veteran Cathie Lesjak. Board members Marc Andreessen, Lawrence Babbio Jr., John Hammergren and Joel Hyatt are heading up the search for a permanent replacement.

Released in tandem with the announcement of Hurd’s departure, news that HP (HPQ) has raised its full-year outlook for revenue. “We thought it was important for people to appreciate that the announcement today has nothing to do with the operational performance of the company; it is all about Mark’s behavior and judgment,” Lesjak said during a conference call. “Mark…was a strong leader, but at the end of the day, he didn’t drive the initiatives. It was the organization.”

HP CEO Mark Hurd Resigns; CFO Cathie Lesjak Appointed Interim CEO

PALO ALTO, Calif., Aug 06, 2010 — HP (NYSE: HPQ) today announced that Chairman, Chief Executive Officer and President Mark Hurd has decided with the Board of Directors to resign his positions effective immediately.

The Board has appointed CFO Cathie Lesjak, 51, as CEO on an interim basis. Lesjak is a 24-year veteran of the company who has served as HP’s CFO and as a member of the company’s Executive Council since January 2007. She oversees all company financial matters and will retain her CFO responsibilities during the interim period.

Hurd’s decision was made following an investigation by outside legal counsel and the General Counsel’s Office, overseen by the Board, of the facts and circumstances surrounding a claim of sexual harassment against Hurd and HP by a former contractor to HP. The investigation determined there was no violation of HP’s sexual harassment policy, but did find violations of HP’s Standards of Business Conduct.

A Search Committee of the Board of Directors has been created, consisting of Marc L. Andreessen, Lawrence T. Babbio, Jr., John H. Hammergren, and Joel Z. Hyatt, which will oversee the process for the identification and selection of a new CEO and Board Chair. HP’s lead independent director, Robert Ryan, will continue in that position.

Hurd said: “As the investigation progressed, I realized there were instances in which I did not live up to the standards and principles of trust, respect and integrity that I have espoused at HP and which have guided me throughout my career. After a number of discussions with members of the board, I will move aside and the board will search for new leadership. This is a painful decision for me to make after five years at HP, but I believe it would be difficult for me to continue as an effective leader at HP and I believe this is the only decision the board and I could make at this time. I want to stress that this in no way reflects on the operating performance or financial integrity of HP.”

“The corporation is exceptionally well positioned strategically,” Hurd continued. “HP has an extremely talented executive team supported by a dedicated and customer focused work force. I expect that the company will continue to be successful in the future.”

Robert Ryan, lead independent director of the Board, said: “The board deliberated extensively on this matter. It recognizes the considerable value that Mark has contributed to HP over the past five years in establishing us as a leader in the industry. He has worked tirelessly to improve the value of HP, and we greatly appreciate his efforts. He is leaving this company in the hands of a very talented team of executives. This departure was not related in any way to the company’s operational performance or financial condition, both of which remain strong. The board recognizes that this change in leadership is unexpected news for everyone associated with HP, but we have strong leaders driving our businesses, and strong teams of employees driving performance.”

“The scale, global reach, broad portfolio, financial strength and, very importantly, the depth and talent of the HP team are sustainable advantages that uniquely position the company for the future,” said Lesjak. “I accept the position of interim CEO with the clear goal to move the company forward in executing HP’s strategy for profitable growth. We have strong market momentum and our ability to execute is irrefutable as demonstrated by our Q3 preliminary results.”

Lesjak has taken herself out of consideration as the permanent CEO but will serve as interim CEO until the selection process is complete. Candidates from both inside and outside the company will be considered. The selection of a new chairman will occur in conjunction with the CEO decision.

The company does not expect to make any additional structural changes or executive leadership changes in the near future.

HP CFO Doesn't See Win 7 Triggering PC Refresh Cycle

Eric Savitz — Wed, 19 Aug 2009 08:00:37 +0000

Hewlett-Packard (HPQ) CFO Cathie Lesjak says the company does not expect the debut of Microsoft (MSFT) Windows 7 to trigger a major PC refresh cycle.

“We think it looks like a good product, one that folks will really like, but we don’t think it is different enough to drive a refresh cycle,” she said in an interview this afternoon with Tech Trader Daily following the company’s Q3 earnings report. “It’s kind of the way we though about Vista. Over time, folks will move. Others are calling for more of a hockey-stick effect, but we’re not counting on it at this point.”

Meanwhile, Lesjak says the company believes business conditions overall are stabilizing. She said U.S. and China demand stabilized last quarter, and that the trend spread into the Asia Pacific region in the July quarter.

Read the rest of this post on the original site

HP CFO “Very Confident” on Current Quarter Guidance

Eric Savitz — Tue, 16 Sep 2008 21:36:08 +0000

Hewlett-Packard (HPQ) CFO Cathie Lesjak today told investors at the Bank of America securities conference in San Francisco that the company remains “very confident” it can reach its current guidance for the fiscal fourth quarter ending November. HP sees profits for the quarter of 95-97 cents a share and revenue of $30.2 billion and $30.3 billion, Reuters notes.

Lesjak also said the company is confident it can meet its operating margin targets of 5-5.5 percent for fiscal 2009.

She said the impact on the company from the recently strengthened dollar to be “marginal at best.” She also said said that while HP will continue to buy back shares, it will do so at a slower rate in the next 12 to 15 months.

Yesterday, HP announced plans to cut 24,600 jobs following the completion of its acquisition of EDS.

Read the rest of this post

HP Declares EDS Employee Surplus

John Paczkowski — Tue, 16 Sep 2008 20:27:45 +0000

[ See post to watch video ]

New From HP: PinkSlipJet EDS Edition

John Paczkowski — Mon, 15 Sep 2008 22:20:14 +0000

Cost-cutting is one of my favorite subjects. We have quite a bit more to do.”

– HP CFO Cathie Lesjak, Sept. 10, 2008

When Hewlett-Packard (HPQ) CFO Cathie Lesjak said she was fond of cost-cutting, she wasn’t kidding. On Monday HP announced plans to cut 24,600 jobs over the next three years as it digests Electronic Data Systems, the technology services giant it acquired for nearly $14 billion this summer. The job cuts amount to about 7.5 percent of the combined company’s total workforce, and most will come from EDS, whose bloated cost structure was in need of a good trim. HP estimates $1.8 billion in annual cost savings once the three-year program is completed. “I think most of you that follow us know I am a big believer that having the most efficient cost structure directly relates to your ability to scale and grow,” HP CEO Mark Hurd explained to securities analysts.

Incidentally, 24,600 sacked employees is a new record for Mark Hurd, whose first big act as HP’s CEO was a restructuring that eliminated some 15,000 jobs.

[Image credit: jischinger]