Ann Livermore, Pete Bocian and Randy Mott are moving out, although Livermore will remain on the HP board of directors. CEO Apotheker appears to be centralizing his power.
CEO L??Â«o Apotheker and a reconfigured board of directors made some key changes
June 13 in the company's leadership, relieving three longtime executives of
the way out of HP's day-to-day operations management after 29 years is Ann
Livermore, 52, whose current position is head of HP Enterprise Services.
Livermore, however, has been offered a spot on the HP board and will remain as
the interim chief of Enterprise Services until a permanent replacement can be
had been considered a candidate for the CEO position several times during her
tenure at HP. She joins an HP board that swapped
out several members last January
as Apotheker took over as CEO.
exiting HP execs who were hired by former CEO Mark Hurd weren't as fortunate to
be asked to join the board. Pete Bocian, 57, hired as executive vice president
and chief administrative officer in 2008-whose position is being eliminated-and
Randy Mott, 55, executive vice president and chief information officer since
2005, are out effective immediately, HP said. The company is starting a search
for Mott's replacement.
Pressure Due to So-So Earnings Reports?
probably not a coincidence that changes such as these are being made now, only
weeks after a modestly
profitable quarterly earnings report
showed a sharp
drop-off in the year-to-year sales of HP consumer PCs
-a sector upon which
the company relies heavily. A corresponding upsurge in the sales in the last
year of tablet PCs, mostly from Apple, is considered a major reason for a 23
percent drop in consumer PC sales from 2010 to 2011.
Apple owning a yearlong head start and about 90 percent of the tablet market-not
to mention the flood of Android-based tablets moving swiftly into the market-HP
is running late with its TouchPad tablet
, which has received good early
reviews but isn't due out until next month.
said the moves are "organizational changes that will more closely align
its corporate structure with the strategy" that new President and CEO Apotheker
revealed back on March 14
who was with German enterprise software maker SAP for two decades and was hired
for the HP CEO job in September 2010, is centralizing the operational corporate
leadership around his office by removing some layers of administration-in this
case, Livermore, Mott and Bocian.
example, HP said that David Donatelli-who runs a large part of the company as
executive vice president of enterprise servers, storage, networking and
technology services-and Bill Veghte, executive vice president of the software
division, now will report directly to Apotheker.
Zadak, executive vice president of global sales, also will report to Apotheker.
HP said these executives reporting to Apotheker give "their respective
units greater visibility and support throughout the entire HP
two other HP executives have been given additional duties. Todd Bradley,
executive vice president of the personal systems group, who was considered a
short-list candidate for CEO before Apotheker was hired, will now head up
cross-business initiatives focused on expanding HP's market share in China.
Joshi, current executive vice president of the imaging and printing group, will
lead a similar initiative in India.