HP names new chief executive
Hewlett-Packard Co. on Thursday tapped Leo Apotheker as its chief executive, handing the reins of the world’s largest technology company to a software industry veteran with global credentials.
Apotheker, who spent more than two decades at German business software company SAP, abruptly resigned as its CEO earlier this year.
He succeeds Mark Hurd, whose ouster by HP in August sent shock waves through Silicon Valley, where he was credited with turning around the company that is now the largest seller of printers, personal computers and servers as well as a major player in services, storage and software.
HP also named Ray Lane, managing partner at Kleiner Perkins Caufield & Byers and former president of Oracle Corp., as nonexecutive chairman.
The two hires didn’t have the star power to dazzle Wall Street, with HP shares slipping in after-hours trading. But analysts said both are seasoned executives who, with the strong bench HP already has, could play pivotal roles, particularly in helping the company boost its software business.
“They add a lot of software expertise to HP’s arsenal,” Kaufman Bros. analyst Shaw Wu said. “Software only accounts for 3% of HP’s revenue. A company of HP’s size arguably should have a much larger software business. At the end of the day, software is the highest-margin business out there. So the more the better.”
UBS software analyst Brent Thill said the hires could signal a shift. “HP is not as effective on the software side,” he said.
The hires also were viewed as a counterpunch to rival Oracle recruiting Hurd as its president.
Hurd resigned from HP last month after an investigation of a sexual harassment allegation from a contractor turned up inaccurate expense reports filed by Hurd or on his behalf. He joined Oracle, which prompted HP to try to block the move, saying Hurd could not work as president of Oracle without revealing trade secrets or confidential information. Hurd resolved the lawsuit by waiving his rights to restricted stock.
Apotheker competed fiercely with Oracle for years. Lane was once a trusted lieutenant to Oracle CEO Larry Ellison before his abrupt departure as president and chief operating officer in 2000.
HP passed over internal candidates to pick Apotheker. The list included Vyomesh Joshi, who runs HP’s printer business; Todd Bradley, head of the personal computer division; Dave Donatelli, who runs the storage and server unit; Tom Hogan, executive vice president of enterprise sales and marketing; and Ann Livermore, executive vice president of the enterprise business. The announcement comes the same week that the company held a bullish investor meeting.
This is only the third time HP has hired from outside its ranks. Hurd’s predecessor, Carly Fiorina, who came from Lucent Technologies, was ousted after the $18.9-billion Compaq acquisition failed to live up to expectations and HP’s stock lost half its value. Hurd, hired from NCR Corp., was heralded for helping HP regain its momentum.
jessica.guynn@latimes.com
