Massive severance packages are nothing new, but sometimes you just feel the need to call attention to them. Ousted HP CEO Leo Apotheker is leaving the company with a $ 7.2 million severance payment, plus a $ 2.4 million bonus and $ 3.7m in stock (more if you count the other 440,000 vested shares). I understand that this high pay is part of our business culture, but really, now.
Is it possible that HP was in a death spiral and only Apotheker’s sound judgment caused them to get away with a mere 45% drop in value? It seems unlikely that they’d kick him to the curb after less than a year if that were the case.
But no, he’s leaving with millions in cash and stock , and HP will even be paying for the lawyers who negotiated the package, and they’ll pay up to $ 300K if he feels like moving.
Of course, I wouldn’t have wanted to live that year in Apotheker’s shoes. He faced some extremely difficult decisions and massive internal changes following the acquisition of Palm. The best of men would have struggled. But his handling of Palm and webOS is wide open to criticism. It was a billion-dollar deal that needed to be shaped while it was hot, and (although there was certainly a good amount of internal politics that had to do with this as well) he didn’t do that, and now it’s a billion-dollar boondoggle. Perhaps Hurd’s ambition is partly to blame as well, but I don’t think many would compliment Apotheker’s work in this critical area during his reign.
His big move to split up the business was certainly ballsy, but so was the charge of the light brigade. HP’s customers and the market both found it a disturbing development, the world’s biggest PC company flailing about like that. Acer too has publicly admitted its entire strategy needs revision, but it was done with caution and humility.
I’ll stop there before I naively dig myself any deeper. But I just wanted to register fresh astonishment at this culture that throws money away like this. I’m surprised Apotheker was allowed to leave with his skin.
All the information is here in this SEC filing, if you’re curious.
Crunchbase
- LEO APOTHEKER
Leo Apotheker was most recently the CEO of HP. He previously served as the co-CEO of SAP from April 2008 until February of 2010.
Before his appointment as SAP’s co-CEO, Apotheker was Deputy CEO from 2007 to 2008, member of the SAP AG Executive Board and President of Global Customer Solutions Operations from 2002 to 2007, and President of SAP EMEA (Europe, Middle East and Africa) from 1999 to 2002.
He was CEO and founder of SAP…
Learn more
Leo Apotheker was made the president and CEO of Hewlett-Packard on September 30, 2010. Today, just shy of a year later, he has stepped down from his post and HP’s board of directors appointed Meg Whitman as his replacement. Big surprise, right?
Under the leadership of Apotheker, HP’s stock lost nearly half of its value, basically squandered Mark Hurds’ $ 1.2 billion investment in Palm and announced that the company was considering cancelling or spinning off its consumer PC business. In short, HP lost its way within the last 357 days.
This move is hardly unexpected as it was rumored extensively over the last week. Meg Whitman was previously the head of ebay and joined HP’s board of directors in January 2011. She also sits on the boards of Procter & Gamble, Zipcar and Teach for America.
In a statement released by HP today, Whitman stated, ” “I am honored and excited to lead HP. I believe HP matters – it matters to Silicon Valley, California, the country and the world.”
Sounds good to us, Meg. Do Bill Hewlett and Dave Packard a solid though and don’t abandon their original mission. Keep the PC business and promote a start-up feel throughout the massive HP machine. Don’t forget the company you now lead was founded in a Palo Alto garage.
Crunchbase
- MEG WHITMAN
- LEO APOTHEKER
Learn more
Person: Meg Whitman Website: megwhitman.com Companies: eBay, Zipcar
Meg Whitman, is the former CEO and Board Chairman of eBay. She resigned in March of 2008. In September of 2009, she announced her official candidacy for governor of California.
Leading eBay from 1998 to 2008, Meg helped the company grow from 30 employees and a little over $ 4 million in revenue to more than 15,000 employees, nearly $ 8 billion in revenue, and a network of 12 million users in California alone. Under Meg’s leadership, eBay…
Learn more
Person: Leo Apotheker Website: Companies: SAP, Hewlett-Packard
Leo Apotheker is the CEO of HP. He previously served as the co-CEO of SAP from April 2008 until February of 2010.
Before his appointment as SAP’s co-CEO, Apotheker was Deputy CEO from 2007 to 2008, member of the SAP AG Executive Board and President of Global Customer Solutions Operations from 2002 to 2007, and President of SAP EMEA (Europe, Middle East and Africa) from 1999 to 2002.
He was CEO and founder of SAP France and…
Learn more
Well, after less than a year on the job as HP’s top dog Léo Apotheker is out, and former eBay CEO and one time candidate for California governor Meg Whitman is in. The move was hardly unexpected, but it very quickly evolved from quiet mumblings and rumors to full-fledged fact this afternoon. It was initially expected that Whitman would only be stepping in as an interim solution — just another person passing through the revolving door at the entrance to the CEO’s office. But, Whitman, a current board member, is in for the long haul. She’s is stepping in at a crucial and somewhat difficult time for the company that has seen its stock price plummet 47-percent, its $ 1.2 billion mobile OS flounder and is considering spinning off its PC business. She is no stranger to controversy (simply refer to her short tenure with Goldman Sachs) and was an integral part in growing eBay from a startup with just a couple of dozen staff members to one of the most popular destinations on the internet — so, at least she’s accustomed to having a few curve balls thrown her way. In a statement today, Whitman said that “I am honored and excited to lead HP. I believe HP matters – it matters to Silicon Valley, California, the country and the world.” The company’s press release is after the break.
Continue reading HP names Meg Whitman new President and CEO, gives Leo Apotheker the boot
HP names Meg Whitman new President and CEO, gives Leo Apotheker the boot originally appeared on Engadget on Thu, 22 Sep 2011 16:06:00 EDT. Please see our terms for use of feeds.
Permalink | | Email this | Comments
Related Posts:
HP has just named their new CEO. No, it’s not Todd Bradley — a popular guess out of the current ranks (and clearly he was thinking about it as well). Instead, HP’s Board went outside and picked Léo Apotheker, the former CEO of SAP.
In February, Apotheker abruptly left SAP after only seven months in the CEO position – well, the sole-CEO position. He had been co-CEO with Henning Kagermann for almost a couple of years before that. But he had been with SAP for over 20 years.
