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AnonymousInactiveHandicapping the HP Hopefuls
Techdom’s top names are popping up as the search to replace Carly
hits overdrive
Hewlett-Packard Co.’s search for a new
chief executive — only the sixth permanent chief in the tech giant’s 66-year
history — is gathering momentum. A successor to former CEO Carleton S. Fiorina
could be named as early as the end of March, just seven weeks after Fiorina was
forced out. And as the list of candidates narrows, at least one surprising name
has popped up. Richard E. Belluzzo, a longtime HP exec who now runs data-storage
company Quantum Corp. , has emerged as “a strong candidate,” according to two
sources close to the search.The list of candidates remains in flux, but
a number of high-powered execs have been approached. Sources familiar with the
search confirm that other names include 3M Chief Executive W. James McNerney
Jr., Intel Executive Vice-President Sean M. Maloney, Symantec CEO John
Thompson, and John Joyce, IBM senior vice-president of global services. These
executives say they are not interested in the HP job, but the board continues to
vet potential candidates, with would-be CEOs presenting proposals about
strategy.Finding the right candidate fast is critical. Often such
searches take three to six months. But the company has little time to waste as
it struggles to improve internal execution and stem losses to rivals Dell Inc.
and IBM. Since the start of 2004, HP’s stock is down 8%, trailing nearly every
competitor, while Dell’s price has soared 20% during the same period. Even if a
new CEO is named by the end of March, it could take months to settle on a firm
agenda for reviving the company. “You’d have to get into the trenches of this
company for six months to figure out a plan that will win,” says Jeffrey
Christian, the executive recruiter who spearheaded the search that brought in
Fiorina in 1999.“ROCKET RICK”
Would
Belluzzo be the right man for the job? The 51-year-old executive certainly knows
HP’s businesses and culture. After joining HP as an accountant in 1975, he
earned the nickname “Rocket Rick” as his operations and distribution skills
propelled him to the top of company’s printer and computing businesses. Known
for his hard-working ways, he executed the plan of mentor Richard A. Hackborn,
an influential HP director, to make the company a powerhouse in high-volume
consumer markets. While he was deemed the company’s heir apparent before he left
for the CEO job at Silicon Graphics Inc. in 1998, some say his focus on
commodity products led to the decline of HP’s corporate computing
unit.Belluzzo’s post-HP track record, moreover, has been lackluster. His
efforts to turn around Silicon Graphics foundered after a move to Windows-based
servers failed to work; that was followed by a rocky stint as the No. 3 at
Microsoft Corp. Since becoming chief executive of Quantum in 2002, Belluzzo has
earned kudos for cost-cutting and crafting a new game plan for the data-storage
company. Still, the company’s stock has inched up just 3% during his tenure.
Belluzzo did not return numerous calls seeking comment, and an HP spokesman
declined to discuss the search.Whoever steps into the corner office
obviously will face a challenging task but will have some room to maneuver.
Despite calls from Wall Street to break apart the company, HP’s board has
publicly stated that it expects the new chief executive to manage businesses
ranging from digital TVs to tech services. But one candidate who spoke with the
board said the internal message isn’t so inflexible. The board is open to
considering strategic options, such as spinning off the PC unit or the printer
division. An HP insider adds that while it’s unlikely they will hire someone
pushing a spin-off, HP is “open to discussion over strategy.” Whichever big-name
exec that turns out to be, the key is finding the right fit — the faster the
better. -
AuthorMarch 12, 2005 at 10:59 AM
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