HP's New CEO Pick Is Absolutely Bananas

Why would you pick an unemployed failed exec?
By Kevin Spak,  Newser Staff
Posted Oct 1, 2010 12:41 PM CDT
Leo Apotheker, CEO of German software company SAP, is seen during the annual financial statement in Frankfurt, Germany, in a Jan. 27, 2010.   (AP)

(Newser) – HP could have picked someone with a proven record to be its next CEO. It could have picked someone who knew its business, maybe an internal candidate, or a rising star at a rival company. “It could have found someone with a job,” suggests Adam Lashinsky of Fortune. “It didn’t.” Instead, HP hired Léo Apotheker, whose last gig was as CEO of SAP, a business software firm that’s been getting killed by Microsoft and Oracle. He was fired after less than a year at the helm.

The business world reacted quickly to HP's choice: “Idiotic,” declared one European investor. “Astonishing,” said a US software executive. HP shares fell 3% on the news. In a call this morning, Apotheker said he’d refocus HP on software—which currently makes up only 3% of its business, according to Reuters. Nor was Apotheker a cheap hire. HP will pay him $4.6 million just to cover his moving expenses from Paris to California, plus a signing bonus of $4 million, an annual salary of $1.2 million, and an annual bonus 200 to 500 times that, according to CNET. (Read more Leo Apotheker stories.)

My Take on This Story
Show results without voting  |