HP hires Russell Reynolds for new CEO search

by Guest Contributor | Feb 18, 2005 2:35:00 PM

Tags: Guest Contributor

Takeaway: The full Hewlett-Packard board will also be involved in the process of replacing Carly Fiorina, the company says.

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By Reuters

Hewlett-Packard said Thursday it has hired executive search company Russell Reynolds Associates to find a new chief executive for the No. 2 computer maker following last week's ouster of Carly Fiorina from that position.

While Russell Reynolds will manage the search, Palo Alto, Calif.-based HP has said that the full board will be involved in the search process as well.

Patricia Dunn, nonexecutive chairman of HP's board, said the company "will not comment further until we are ready to announce our new CEO."

The board of HP last week ousted Fiorina, the architect of the controversial $19 billion acquisition of Compaq Computer in May 2002 that never produced the results she had promised investors.

Some analysts and investors have called for the board to break up the company by perhaps spinning off its lucrative imaging and printing business, selling its PC business, or all of its computer, computer services and software businesses.

HP faces competition on the high end of the computer and computer services market from IBM and from Dell in personal computers.

In 2004, HP lost the No. 1 position in the PC market place to Dell.

Shares of HP lost more than 50 percent of their value since Fiorina was hired from Lucent Technologies in July 1999, with a mandate from HP's board to reinvigorate and streamline the Silicon Valley giant.

Shares of HP fell 20 cents to close at $20.86 on the New York Stock Exchange.