Thursday, September 30, 2010

HP names another outsider as CEO

Shares of PC-maker Hewlett-Packard fell sharply Thursday after it named as its new CEO Leo Apotheker, the former head of business software maker SAP. HP shares fell $1.46, or 3.5 per cent, to $40.61 in after hours trading. Hewlett-Packard has named Leo Apotheker, shown in January as CEO of German software company SAP, as its new head. Apotheker will succeed Mark Hurd, who left the company on Aug. 6 after an investigation found he falsified expense reports related to a former HP contractor who accused him of sexual harassment.

The company probe concluded that HP's sexual harassment policy was not violated, but that its standards of business conduct were. Hurd received a severance payment worth $12.2 million US. The news of Apotheker's appointment came as something of a surprise. HP was expected to go with an insider for the new CEO after the last two CEOs — Hurd and his predecessor, Carly Fiorina, both outsiders when they were hired — clashed with the board and were forced out.

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