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First Yahoo, Now Hewlett Packard: Board Said To Weigh Apotheker Ouster, Shares Soar

Tyler Durden's picture




 

When all else fails, scapegoat, which in corporate America means fire your CEO. According to a headline from Bloomberg right now, HPQ (and soon many other companies) will follow Yahoo in dumping its CEO, Leo Apotheker. The result: a surge in the stock. Our question: will Leo draft his "WTF" letter from an iPad as well? Expect the Netflix board to "spin off" its CEO next.

From Bloomberg:

Hewlett-Packard Co. (HPQ)’s board plans to meet to consider whether to oust Leo Apotheker as chief executive officer after less than 11 months on the job, two people familiar with the matter said.

 

Under a scenario being considered, Hewlett-Packard’s directors may appoint former EBay Inc. (EBAY) CEO Meg Whitman as his successor, possibly on an interim basis, said one of the people, who asked not to be named because the plans aren’t public.

 

If the board carries through on the plan, Apotheker, 58, would depart after slicing sales forecasts three times since he became CEO in November and presiding over strategy shifts that left shareholders doubting his credibility. The company’s stock has plunged 47 percent on his watch, and “investor exasperation” with management is at its highest in more than a decade, Toni Sacconaghi, an analyst at Sanford C. Bernstein & Co., said in a research report last week.

 

Whitman, who joined Hewlett-Packard’s board in January after a failed bid to become California’s governor last year, had a mixed record at EBay. As CEO for a decade, she took the company public and pioneered online commerce for small businesses. Yet she also failed to halt a slowdown in revenue growth and overpaid for Skype Technologies SA after a three-way bidding war with Google Inc. and Yahoo! Inc.

 

Pressure on Apotheker intensified last month after he announced a sweeping overhaul that included a $10.3 billion acquisition of Autonomy Corp. and a possible spinoff of Hewlett- Packard’s personal computer division. He also reversed course on a plan announced only five months earlier to put the WebOS mobile operating system onto the company’s computers.

More here

 

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Wed, 09/21/2011 - 11:29 | 1692522 TruthInSunshine
TruthInSunshine's picture

Short list of new HP CEOs:

 

 

  • Jonathan Schwartz
  • Chuck Conway
  • George Shaheen
  • Tommy Sopwith
  • Angelo Mozilo
  • John Rigas
  • William Seawell
  • Raymond W. McDaniel, Jr
  • Eckhard Pfeiffer
Wed, 09/21/2011 - 11:36 | 1692576 sushi
sushi's picture

You omitted Carly Fiorina.

Wed, 09/21/2011 - 11:37 | 1692579 DormRoom
DormRoom's picture

Carol Bartz ftw.

Wed, 09/21/2011 - 11:38 | 1692586 homersimpson
homersimpson's picture

You mind as well throw Bill Parcells in there. At least he knows how to turnaround bad teams..

Wed, 09/21/2011 - 11:41 | 1692597 TruthInSunshine
TruthInSunshine's picture

How about Bob Uecker?

Wed, 09/21/2011 - 11:52 | 1692648 Larry Darrell
Larry Darrell's picture

Miami Dolphins fans would disagree with you.

Wed, 09/21/2011 - 12:04 | 1692702 Nation of Imbeciles
Nation of Imbeciles's picture

So would the Cowboys

Wed, 09/21/2011 - 11:52 | 1692644 covert
covert's picture

atlas will shrig until the age of envy collapses under it's own weight

http://covert3.wordpress.com

 

Wed, 09/21/2011 - 12:07 | 1692712 optimator
optimator's picture

Only Reed Hastings is qualified for the job, he's got the touch.

Wed, 09/21/2011 - 11:26 | 1692531 doomandbloom
doomandbloom's picture

or will he use the iResign app?

Wed, 09/21/2011 - 12:13 | 1692741 optimator
optimator's picture

He's got his tech folks trying to figure out whats wrong with his printer so he can keep a resignation letter for his file.

Wed, 09/21/2011 - 11:26 | 1692536 rtalcott
rtalcott's picture

I vote for Bill & Dave

Wed, 09/21/2011 - 11:28 | 1692542 rajc
rajc's picture

I think firing CEO in most cases is a correct steps. i mean how the F can you fuck up a product line

Wed, 09/21/2011 - 11:29 | 1692544 Seasmoke
Seasmoke's picture

i dont think Apple "dumped" their CEO

Wed, 09/21/2011 - 11:33 | 1692561 X.inf.capt
X.inf.capt's picture

.

not to mention thier golden parachutes...

Wed, 09/21/2011 - 11:30 | 1692552 oogs66
oogs66's picture

if hpq just kept naming and firing ceo's over and over, their stock would be up 100%

Wed, 09/21/2011 - 11:37 | 1692580 Joe Davola
Joe Davola's picture

Yeah, that whole being able to charge a premium because your product is better engineered than the competition thing is so overrated.

Wed, 09/21/2011 - 11:34 | 1692570 TheMerryPrankster
TheMerryPrankster's picture

The skies are bright with reflections from horizon to horizon as the skies are filled with golden parachutes and ceos dangling with pockets brimming with cash.

Just another day in paradise.

Wed, 09/21/2011 - 11:35 | 1692573 King_of_simpletons
King_of_simpletons's picture

Do stocks need a reason to soar these days ?

Wed, 09/21/2011 - 11:38 | 1692581 SheepDog-One
SheepDog-One's picture

'The shares 'soared' from 22 to almost 24'? Wow, Im completely underwhelmed.

Wed, 09/21/2011 - 12:48 | 1692960 CvlDobd
CvlDobd's picture

Almost back to 2009 lows!

Wed, 09/21/2011 - 11:39 | 1692588 SloMoe
SloMoe's picture

Apotheker's an idiot, but let's not forget who gutted one of America's great companies--Fiorina & Hurd.

Wed, 09/21/2011 - 11:39 | 1692589 BrocilyBeef
BrocilyBeef's picture

let me be the first to say, "Yahoo."

Ahh, the go-go 90s.

Wed, 09/21/2011 - 11:39 | 1692592 fuzed
fuzed's picture

just another golden parachute to fund,  makes everyone happy.

Wed, 09/21/2011 - 11:40 | 1692593 fuzed
fuzed's picture

sorry , didnt think i punched save twice, but tubez says otherwise.

Wed, 09/21/2011 - 11:41 | 1692596 Tator
Tator's picture

Where they really got hammered is with the employees not getting first shot at the Touchpad at the $99 and $149 price point. They offered it to the public before the employees knew anything about it and ran out of stock. I know a few HP folks and they said every employee in the company was furious they did not get a chance to buy them before the public.

Wed, 09/21/2011 - 11:42 | 1692606 SheepDog-One
SheepDog-One's picture

OMFG if I didnt get first dibs on a Touchpad for $149, I'd definitely pull a Milton Waddams and burn the fucker down!

Wed, 09/21/2011 - 11:42 | 1692610 drivenZ
drivenZ's picture

Not to worry, they'll be giving them away as parting gifts when they commence layoffs.  

Wed, 09/21/2011 - 12:02 | 1692691 robertocarlos
robertocarlos's picture

I bought one from HP the day before they closed orders on August 22nd. I heard that those orders were only possible because fo an employee error of not shutting down 32 GB orders. I heard the employees got some of the left-overs from the last manufacturing run to satisfy the manufacturers and those customers who ordered after the product was sold out. In short it was a cluster fook. You can still buy one from the idiots, (market savy), on ebay. 

Wed, 09/21/2011 - 11:40 | 1692598 monopoly
monopoly's picture

Tyler, I am with you 98% of the time but "Steve Jobs being dumped" is just plain wrong. The man, no matter how you feel about him personally, turned a company around and made it one of the most profitable and successful companies on the planet. And the fact that he is most probably dying from his cancer and other medical problems and has stepped down on his own, is far from being "a CEO that was dumped". My guess is he has less than 3 months to live.

 

Wed, 09/21/2011 - 12:12 | 1692738 DCFusor
DCFusor's picture

You're giving away your ignorance.  Steve WAS dumped.  The company didn't turn around until after he came back.

http://en.wikipedia.org/wiki/Steve_Jobs

1985.  Might have been before you were born? 

Wed, 09/21/2011 - 12:40 | 1692912 monopoly
monopoly's picture

We are not talking about 1985 but last month DC as I interpret the post.

Wed, 09/21/2011 - 11:42 | 1692607 Dr. Engali
Dr. Engali's picture

Can we fire the CEO of corporate America? Today please.

Wed, 09/21/2011 - 11:45 | 1692619 SheepDog-One
SheepDog-One's picture

Spin off Obama, sounds good.

Wed, 09/21/2011 - 11:57 | 1692670 Oh regional Indian
Oh regional Indian's picture

The US IS a corporation.

The President IS the CEO. Bush Jr. was not kidding. He let out a lot of truths under his gee whiz, aw shucks exterior.

Truth about America

Wed, 09/21/2011 - 11:42 | 1692609 Agent P
Agent P's picture

auf Wiedersehen, bitchez!

Wed, 09/21/2011 - 11:44 | 1692616 buzzsaw99
buzzsaw99's picture

They should opt for "no ceo" then use the millions they would have paid him/her to buy back stock.

Wed, 09/21/2011 - 11:45 | 1692617 Prescient_Point
Prescient_Point's picture

Acquiring Palm, then releasing touchpad with a lousy HW and then to shelf the entire platform and WebOS was a loooussssy decision. He needs to be fired.... Nothing less will do. It is not scapegoating it is firing for sheer incompetence and poor judgement...

Wed, 09/21/2011 - 11:51 | 1692640 Agent P
Agent P's picture

To be fair, HP acquired Palm before the acquired Apotheker.

Wed, 09/21/2011 - 11:59 | 1692679 No One
No One's picture

True, but it was Apotheker who said that WebOS was going to be on the phone, tablet, PC, etc. etc.. and then in a matter of months killed it. It is also under Apotheker's direction that they killed their PC business. You don't announce you are evaluating strategic alternatives that may take 12 - 18 months to finalize. Who is going HP PC's now for their Windows 7 deployments? I think IBM basically announced that they sold their PC business to Lenovo (after a few days of rumors).

Wed, 09/21/2011 - 12:24 | 1692803 Agent P
Agent P's picture

No argument there.  And for the record, I'll be glad to see him go.  I just hope he gets the boot before next Friday, so he gets the "less than a year" brand of shame.

Wed, 09/21/2011 - 11:49 | 1692633 SheepDog-One
SheepDog-One's picture

Anyone considering anything beyond 'stock price' that Yahoo and HP simply just suck and are out-dated?

Whats next, a story about AOL CEO being oustereded?

Wed, 09/21/2011 - 11:54 | 1692651 robertocarlos
robertocarlos's picture

Thanks for the discounted Touchpad Leo.

Wed, 09/21/2011 - 11:59 | 1692678 highwaytoserfdom
highwaytoserfdom's picture

Carly Fiorina  and Aglient spun the brains out of HP. Whittman ruined ebay, screwed up Playschool, puched stride rite..  Screw wall street and bring in engineer...   that knows how to source technology and get the pencil out of the a$$ on development.    These clowns are unreal. 

Wed, 09/21/2011 - 11:59 | 1692683 Precious
Precious's picture

The market cannot forever blame HP Management.  There is something wrong with the culture at HP.  The people who work at HP are spoiled brats who have been selling printer cartridges for far too long.  HP is a victim of politically correct bigness, where there are women in simpleton positions like marketing and management, accounting, HR and legal, where they are quite able to simply destroy value as they freeload on the true innovators.  This is endemic at American companies.  Just like America had to prove to itself it wasn't racist, by electing Obama, many corporations have to prove to themselves they are not bigots, by promoting women unjustifiably.  Well, this the the outcome.  It's not a referendum on all women.  There are a few standouts who pull their weight.  It is also not a call to return to the good old days.  Men have had their far share of cronyism and non-productivity.  It's simply to say that social engineering, in any environment, be it corporate, education or goverment, simply doesn't work. HP would be fine if a lot of useless people there were fired.  As it is now, the company should be renamed HR.

Wed, 09/21/2011 - 12:03 | 1692693 Moe Howard
Moe Howard's picture

Of course you are correct, but they will hate on you for saying so.

Wed, 09/21/2011 - 12:01 | 1692688 Moe Howard
Moe Howard's picture

I would have purchased one of those $100 touchpads but I have no use for one. You can't eat em and they don't have any Au or Ag in them.

Wed, 09/21/2011 - 12:04 | 1692697 robertocarlos
robertocarlos's picture

I'm gonna install Windows 8 on mine. Or it can sit there displaying my family photos.

Wed, 09/21/2011 - 12:05 | 1692703 adr
adr's picture

News of firing the CEO just crams a whole lot of headlines in the news feed so the stock jumps. Just like when 100 law firms say they are going to investigate a corporation, the stock soars. Then after the algos have pumped the stock the insiders can dump their shares.

HP is a lost corporation, everyone should get out now. They aren't very good at printers anymore, they aren't very good at computers, and somehow they will be good at software?

Maybe Google should buy them so they can add another hardware arm along with Moto and they get a printer business as well for all that cloud printing. I'd rather have a Googlepoly than an Applepoly any day. At least Google doesn't seem interested in gouging consumers and is actually trying to lower the cost of computing. There is that privacy thing with your information, but who are we kidding there is no such thing as privacy anymore. At least let me pay less to have my privacy invaded.

Wed, 09/21/2011 - 12:08 | 1692717 monopoly
monopoly's picture

Interest rates not far from WWll rates. The absurdity of it all.

Wed, 09/21/2011 - 13:04 | 1692765 Widowmaker
Widowmaker's picture

Netfux is history.

They have the kiss of death upon them.

All they had to do was nothing at all, instead they sliced their market cap in half and both sides will sink into the bowels of "nobody saw it coming" history.  It's been a while since I've seen a [former] growth company roll its shareholders, customers and employees up in a joint and watch the competition smoke it.

Mr. Hastings deserves a failed company with his name on it.  All the hype to subscribers crying about having to pay to supersize their meal and not a peep to shareholders.   Wow.    That in itself is all one needs to know.

Netfux RIP, maybe someone will author a case study about them, but I doubt it.

As soon as the Darwin award is presented and the burnt shareholder leprosy wears off expect to see Netfux as an acquisition target.

Wed, 09/21/2011 - 12:18 | 1692774 technovelist
technovelist's picture

I don't know about HP, but I do know about Microsoft. If the board grew some balls and fired Ballmer (and all his cronies), the stock would soar.

Wed, 09/21/2011 - 12:36 | 1692874 Muddy1
Muddy1's picture

Obummer, CEO of America

Wed, 09/21/2011 - 12:53 | 1692993 Jumbotron
Jumbotron's picture

Hi everyone.

I just wanted to let everyone know I just got fired over the phone by the board.

Thanks to all who was on my team which successfully wound down our WebOS strategy.  I couldn't have done it without you.

Plus a special shout out to same said board who approved the purchase of the PALM OS which HP used to develop WebOS.  And hired the marketing folks who did such a great job in marketing the product and the hardware team who saddled it with shit specs and the accountants who priced it way to high for what you got.

Leo Apotheker

                      sent by HP Touchpad

Wed, 09/21/2011 - 13:26 | 1693218 mantrid
mantrid's picture

a new handy way to stimulate economy: fire some CEOs every 3 months!

someone tell BofA and Goldman how to fix their prices

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