HP board fires Fiorina, cites lack of innovation
By Rachel Konrad
Associated Press
SAN FRANCISCO — Carly Fiorina's nearly six-year reign at Hewlett-Packard Co. ended abruptly yesterday as board members forced her out, disappointed by her inability to transform a plodding technology giant dominated by printer sales into a more nimble innovator.
HP's stock, which has gone nowhere for two years and is down two-thirds from its peak in 2000, rose almost 7 percent after earlier soaring almost 11 percent on the news of her ouster.
Fiorina
Board members said they fired the chief executive — perhaps corporate America's most influential woman — because Fiorina failed to slash costs and boost revenue as quickly as directors had hoped.
"While I regret the board and I have differences about how to execute HP's strategy, I respect their decision," said Fiorina, 50, who is expected to collect a severance package worth $21.1 million.
Fiorina is best known for orchestrating the 2002 acquisition of Compaq Computer Corp. — a $24.2 billion stock deal that required her and Compaq boss Michael Capellas to spend months wooing reluctant executives and shareholders. Fiorina's salary and bonus for 2003 totaled $3.5 million
The fiercest resistance came from HP director Walter Hewlett, son of an HP co-founder.
Hewlett argued that the deal would dilute printing profits while the company absorbed Compaq's low-margin PC business.
HP directors appointed chief financial officer Robert P. Wayman as interim chief executive, and director Patricia C. Dunn non-executive chairman.
