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June 13, 2011, 8:31 PM EDT
By Aaron Ricadela
(Adds an analyst’s comment in the fourth paragraph.)
June 13 (Bloomberg) -- Hewlett-Packard Co. Chief Executive Officer Leo Apotheker elevated executives in the software, sales and services divisions, part of a leadership realignment aimed at boosting sales and making managers more accountable.
Bill Veghte, who runs software; Jan Zadak, executive vice president of global sales; and Dave Donatelli, head of the unit in charge of servers, storage, networking and some technology services, will now report directly to Apotheker, Hewlett-Packard said today in a statement. Ann Livermore, passed over three times for the top job, will join the board.
Apotheker, who took the helm Nov. 1, is shifting managers in a bid to revive sales growth and slice costs after cutting $1 billion from his annual revenue projection last month and issuing current-quarter forecasts that missed estimates. By supervising business computing, software and sales directly, Apotheker is shaping a management team with clearer lines of reporting for key areas.
"He’s kind of a slow mover as we’re starting to learn, but he’s finally making some changes," said Brian Marshall, an analyst at Gleacher & Co. in San Francisco, who has a "buy" rating on the shares. "He’s trying to increase accountability across the organization. There aren’t going to be as many layers of management as they had in the past."
Apotheker’s Vision
The moves reflect Apotheker’s aim, outlined March 14, to expand in software, cloud computing services and international sales. Todd Bradley, who runs the division that includes personal computers, and Vyomesh Joshi, head of the printer unit, will take on additional responsibilities to extend the company’s market share in China and India, respectively.
Livermore, a 29-year veteran of Palo Alto, California-based Hewlett-Packard, will cease day-to-day management of the division that caters to large corporations. The move eliminates overlap in the oversight of enterprise computing, Shaw Wu, an analyst at Sterne Agee Leach & Co. in San Francisco, who rates the company "buy."
Livermore, who joined the company in 1982 and had supervised Donatelli, will continue to lead enterprise services while the company looks for a new executive to run outsourcing and consulting, the areas outside Donatelli’s purview.
"Dave Donatelli is now the undisputed head of the enterprise business," said Wu. "There’s no ambiguity anymore."
Bocian, Mott Depart
Chief Administrative Officer Pete Bocian and Chief Information Officer Randy Mott are also departing, effective immediately, Hewlett-Packard said.
Bocian had run real estate operations, corporate security and other administrative functions. His job is being eliminated, the company said. Mott, who joined Hewlett-Packard in 2005, had worked at Wal-Mart Stores Inc. and Dell Inc., and was instrumental in the move by former CEO Mark Hurd to close 84 data centers to save $1 billion in costs. The company said it’s looking for a new CIO.
The elevation of Donatelli, Zadak and Veghte could temporarily hamper Apotheker’s efforts to reignite growth as the company adjusts to the changes, ISI Group analyst Abhey Lamba said in a note to clients today.
Many large customers that long dealt with Livermore will need to forge relationships with new executives, said Sterne Agee’s Wu.
“Ann’s been a fixture,” he said.
Hewlett-Packard shed 48 cents, or 1.4 percent, to close at $34.65 today in New York Stock Exchange composite trading. The shares have lost 18 percent this year.
--Editors: Tom Giles, Nick Turner
To contact the reporters on this story: Aaron Ricadela in San Francisco at aricadela@bloomberg.net.
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net
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(Adds an analyst’s comment in the fourth paragraph.)
June 13 (Bloomberg) -- Hewlett-Packard Co. Chief Executive Officer Leo Apotheker elevated executives in the software, sales and services divisions, part of a leadership realignment aimed at boosting sales and making managers more accountable.
Bill Veghte, who runs software; Jan Zadak, executive vice president of global sales; and Dave Donatelli, head of the unit in charge of servers, storage, networking and some technology services, will now report directly to Apotheker, Hewlett-Packard said today in a statement. Ann Livermore, passed over three times for the top job, will join the board.
Apotheker, who took the helm Nov. 1, is shifting managers in a bid to revive sales growth and slice costs after cutting $1 billion from his annual revenue projection last month and issuing current-quarter forecasts that missed estimates. By supervising business computing, software and sales directly, Apotheker is shaping a management team with clearer lines of reporting for key areas.
"He’s kind of a slow mover as we’re starting to learn, but he’s finally making some changes," said Brian Marshall, an analyst at Gleacher & Co. in San Francisco, who has a "buy" rating on the shares. "He’s trying to increase accountability across the organization. There aren’t going to be as many layers of management as they had in the past."
Apotheker’s Vision
The moves reflect Apotheker’s aim, outlined March 14, to expand in software, cloud computing services and international sales. Todd Bradley, who runs the division that includes personal computers, and Vyomesh Joshi, head of the printer unit, will take on additional responsibilities to extend the company’s market share in China and India, respectively.
Livermore, a 29-year veteran of Palo Alto, California-based Hewlett-Packard, will cease day-to-day management of the division that caters to large corporations. The move eliminates overlap in the oversight of enterprise computing, Shaw Wu, an analyst at Sterne Agee Leach & Co. in San Francisco, who rates the company "buy."
Livermore, who joined the company in 1982 and had supervised Donatelli, will continue to lead enterprise services while the company looks for a new executive to run outsourcing and consulting, the areas outside Donatelli’s purview.
"Dave Donatelli is now the undisputed head of the enterprise business," said Wu. "There’s no ambiguity anymore."
Bocian, Mott Depart
Chief Administrative Officer Pete Bocian and Chief Information Officer Randy Mott are also departing, effective immediately, Hewlett-Packard said.
Bocian had run real estate operations, corporate security and other administrative functions. His job is being eliminated, the company said. Mott, who joined Hewlett-Packard in 2005, had worked at Wal-Mart Stores Inc. and Dell Inc., and was instrumental in the move by former CEO Mark Hurd to close 84 data centers to save $1 billion in costs. The company said it’s looking for a new CIO.
The elevation of Donatelli, Zadak and Veghte could temporarily hamper Apotheker’s efforts to reignite growth as the company adjusts to the changes, ISI Group analyst Abhey Lamba said in a note to clients today.
Many large customers that long dealt with Livermore will need to forge relationships with new executives, said Sterne Agee’s Wu.
“Ann’s been a fixture,” he said.
Hewlett-Packard shed 48 cents, or 1.4 percent, to close at $34.65 today in New York Stock Exchange composite trading. The shares have lost 18 percent this year.
--Editors: Tom Giles, Nick Turner
To contact the reporters on this story: Aaron Ricadela in San Francisco at aricadela@bloomberg.net.
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net
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