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Entries in Meg Whitman (4)

Thursday
Oct042012

HP CEO's Grim Outlook Sends Company Shares Down

PRNewsFoto/Verizon Wireless(NEW YORK) -- Most CEOs act as cheerleaders for their companies, but not Meg Whitman.  The Hewlett-Packard boss delivered a grim outlook for her company on Wednesday that sent its shares into a tailspin.

HP's market value dropped more than $4.3 billion, with the share price plunging 13 percent after her remarks in San Francisco for analysts and investors.  

A Silicon Valley pioneer, HP is the world's largest seller of personal computers and printers.  Whitman expects a sharp drop in company profits over the next 12 months and says the problems are so severe it might be 2015 before sales begin to accelerate. 

Some analysts were surprised by the depth of the problems Whitman outlined, but others called her candor refreshing.

Copyright 2012 ABC News Radio

Thursday
Oct132011

When CEO Political Campaigns Go Wrong

Comstock/Thinkstock(WASHINGTON) -- A tremendously successful businessman, Herbert Hoover is widely regarded as one of the worst presidents in U.S. history, whose economic policies and slow intervention exacerbated   the Great Depression.

Decades later, today's lagging economy and stagnant unemployment rate have led to a demand for a new kind of thinking in Washington, paving the way for the increasing popularity of a familiar breed, the businessman-turned-politician. With two former CEOs vying for presidential nominations -- Mitt Romney and Herman Cain -- and both leading the pack, here's a look back at some CEOs whose economic and business success failed to translate in the political arena.

Businessman Al Checchi, former co-chairman of Northwest Airlines, spent more than $40 million of his own money running for the Democratic gubernatorial nomination for California in 1998 but ended up a distant second to Gov. Gray Davis. Stereotyped as the "rich" candidate, the mega-millionaire participated in the transformation of three major American companies -- Marriott, Walt Disney and Northwest Airlines -- and is now the author of a new book, The Change Maker: Preserving the Promise of America.

Publisher and editor-in-chief of Forbes magazine, Steve Forbes, entered the presidential race in 1996 and 2000. Forbes' campaigns primarily dealt with, of course, economics, touting the idea of a flat income tax for all Americans. Despite winning the Arizona and Delaware primaries in 1996, he never secured the Republican nomination and dropped out early in 2000. A Time magazine editorial later likened his stiff campaign style to that of a "dork robot" constructed by a "mad scientist."

Billionaire Ross Perot, founder of Electronic Data Systems and Perot Systems, ran for president as a third party candidate in 1992 and 1996. Perot was at one point a front-runner in the 1992 election, but his unwillingness to listen to his campaign advisers or follow their advice caused his poll numbers to slip phenomenally fast, and he withdrew his candidacy in July. The Texas native ran again four years later, but lost once more to Bill Clinton.

Meg Whitman, former president of eBay, ran for governor of California in 2010 and spent more of her own money campaigning than any other self-funded political candidate in U.S. history, including Michael Bloomberg. Before eBay, Whitman had also served as an executive for the Walt Disney Co. (the parent company of ABC News), DreamWorks, Procter & Gamble and Hasbro. Despite her impressive corporate resume and personal expenditures that exceeded $140 million, Whitman lost to Jerry Brown. Whitman is now the president and CEO of Hewlett-Packard. Carly Fiorina, former CEO of Hewlett Packard, ran for California's Senate seat that same year but lost to Democratic incumbent Barbara Boxer.

Linda McMahon, former World Wrestling Entertainment CEO, was a candidate for Connecticut's Senate seat in 2010, campaigning on a platform of fiscal conservatism. Like Whitman, McMahon ran a personally financed campaign, and her spending was often criticized by her opponents. McMahon secured the GOP nomination, but she lost to Democrat Richard Blumenthal in the general election. Despite her failed bid in 2010, McMahon has announced that she will run again for the Senate in 2012.

Copyright 2011 ABC News Radio

Thursday
Sep222011

HP CEO May Be Ousted for Former eBay Boss

Ralph Orlowski/Getty Images(NEW YORK) -- Rumors of the ousting of Hewlett-Packard CEO Leo Apotheker drove the tech company’s stock up over seven percent when deliberations among the company’s board of directors leaked in published reports.

The notion of ousting Apotheker and potentially replacing him with former eBay CEO Meg Whitman seemed to please investors Wednesday, who along with a number of analysts believe that the company is in dire need of a shake-up.

Apotheker has been head of the struggling Silicon Valley company since November of 2010, and since he took control, HP’s stock has slipped nearly 50 percent.

Before his current position heading HP, Apotheker was the CEO of business software engineer SAP AG, beginning in April 2008, but he was forced out of that position less than two years later.  When he came on board as CEO at HP it was theoretically to steer the company away from controversy that included the departure of former CEO Mark Hurd, which was tinged with a sexual harassment lawsuit.

Apotheker has said that during his reign HP has been hindered by Hurd’s under-investment.  Still, Apotheker received wide criticism for his decision-making in selling HP’s personal computer division.  Many feel that Apotheker waffled over selling the business outright or holding it after an auction to gauge interest.

Potential HP replacement Whitman’s back story could prove controversial as well.  The former eBay CEO resigned in 2008 after 10 successful years with the company.  She did, however, just spend well over $100 million in an unsuccessful Republican campaign for California governor in 2010 -- shelling out more than any candidate for a statewide office in U.S. history.

On Wednesday, HP shares rose $1.65, or 7.3 percent, to $24.12.

Copyright 2011 ABC News Radio

Thursday
Jan202011

Shakeups at Top of Google, HP

Photo Courtesy - ABC News(MOUNTAIN VIEW, Calif.) – Both Google and Hewlett-Packard Thursday announced major shakeups at the top of their ranks.

In a letter, Eric Schmidt, who has been the company’s CEO since 2001, announced that co-founder Larry Page will be the new CEO of Google.

“In this new role I know he will merge Google’s technology and business vision brilliantly,” wrote Schmidt. “I am enormously proud of my last decade as CEO, and I am certain that the next 10 years under Larry will be even better!”

The announcement came as part of the company’s new earnings announcements. Google reported revenues of $8.44 billion for the quarter that ended in December, an increase of 26 percent compared to the fourth quarter of 2009. They ended the year with a net profit of $2.54 billion.

In other shakeup news, Hewlett-Packard announced that ex-eBay chief Meg Whitman will be joining its board of directors.

Copyright 2011 ABC News Radio







ABC News Radio