In the short year that Leo Apotheker had control of Hewlett Packard the company's stock fell 5%, from roughly $40 per share to $22.8. Apotheker was criticized by many, including prominent investors when he reneged on promises to integrate mobile software into devices. This along with other some other well publicized mishaps, led to the board's decisions to show Apotheker the door. Apotheker severance package, which included cash, bonuses and stock, was valued at roughly $37 million. His predecessor, Mark Hurd, had also left the company on a negative note, as many of the company's troubles had escalated under his watch. In a Hail Mary attempt to regain support and put the company back on track, the board appointed one of its own to the position of CEO. As stock values declined and investors lost faith and satisfaction the question arises: What is newly appointed CEO Meg Whitman going to do about it?
I think its important to first give some background information on Whitman. Before taking on her position at HP she had been CEO of Ebay for over a decade. She was a member of HP's board of directors, which fellow board members claim was a fundamental part of their decision. They feel Whitman's experience on the board has given her an intricate understanding of the company's mission and the strategies it will peruse to achieve HP's goals. In comparison to Apotheker, Whitman is expected to have a stronger ability to develop company strategies, and communicate them more effectively to managers, board members and investors. Personally I feel that Whitman's decisions will renew HP's name as an industry giant, or set the company back for decades. After rushing two consecutive CEOs out the door during periods of serious instability within the company, I feel strongly that this is the last chance for HP to prove to investors they have finally found a winner.
http://www.usatoday.com/money/industries/technology/story/2011-09-22/hp-whitman/50521192/1
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