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HP announces big shake-up in top management [San Jose Mercury News, Calif.](San Jose Mercury News (CA) Via Acquire Media NewsEdge) June 14--Ann Livermore, one of Silicon Valley's most prominent female executives, will leave her post as head of Hewlett-Packard's (HPQ) biggest division and take a new seat on the company's board in a major shake-up that has two other senior managers joining the recent exodus of those close to former CEO Mark Hurd. The announcement late Monday comes as CEO Leo Apotheker is moving to put his own stamp on the world's largest tech company, which he joined in November, while seeking to improve financial performance that has disappointed Wall Street in recent months. HP's stock has struggled since August, when Hurd was forced to resign in a scandal over his relationship with a part-time marketing contractor. Apotheker is also elevating several executives who joined HP in more recent years, in what amounts to a changing of the guard for the Palo Alto company. Nearly a dozen senior managers have left in recent months. Livermore's appointment to the board is a recognition of her popularity and track record at the company, including the past seven years as head of HP's commercial technology business. But the 52-year-old executive vice president is giving up control of an HP division that produced more than $57 billion in sales last year, or nearly half the company's total revenue. Livermore, a 29-year HP veteran who was twice passed over for CEO in favor of Carly Fiorina and Hurd, "is one of the executives that represents the heart of HP," tech analyst Rob Enderle said. "She represents legacy and stability and is very well-regarded by the employees." But Enderle suggested the changes display a major difference between Apotheker and his predecessor. Hurd allowed each of the company's three main divisions to operate almost like independent companies, provided they met his strict requirements for financial performance. "Hurd was heavy on delegation," Enderle added. "Leo is trying to bring together the company more as a unit and fight the battle from all of its divisions." Livermore's division has now been split into four groups. Three executives responsible for commercial computing hardware, software and sales under Livermore will report to Apotheker, giving him more direct control of those operations. Analysts said it makes sense for Apotheker to want more direct control of the units responsible for selling big computer systems and software to corporate customers at a time of increasing competition with other commercial technology suppliers, such as Oracle (ORCL) and Cisco Systems (CSCO). "These businesses play a vital role in our continued growth and success," Apotheker said in a statement, adding that hardware chief David Donatelli, software head Bill Veghte and global sales leader Jan Zadak "will report directly to me and help drive the overall direction for HP." Also reporting directly to the CEO will be the head of a new business services unit that was split off from Livermore's division last month. Although her appointment to the board was effective Monday, HP said Livermore will continue to oversee the services unit until a new leader is hired. Apotheker has said he wants to beef up the underperforming services operation, which includes a variety of technology consulting and outsourcing operations. Livermore had run the services unit since Hurd engineered HP's $13 billion acquisition of Electronic Data Systems, a major tech services contractor, in 2008. While Hurd's focus on cost-cutting and financial performance made him popular on Wall Street, Apotheker has suggested Hurd put too much emphasis on short-term results and did not prepare Livermore's division to go after more lucrative, long-term service contracts. Apotheker is also giving additional responsibilities to PC division chief Todd Bradley and printer division head Vyomesh Joshi, both of whom report to the CEO. HP said Bradley will lead "cross-business initiatives" in China, while Joshi will do the same in India. Two other senior executives are leaving, in what the company said is part of an effort to streamline administrative operations. Randy Mott, the company's chief information officer, and Pete Bocian, the chief administrative officer, were both recruited by Hurd and worked closely with the former CEO. Their resignations follow the departure of several lower-ranking executives who had been close to Hurd, including chief marketing officer Michael Mendenhall, former executive vice president Tom Hogan, former networking chief Marius Haas, and several other managers under Livermore. Contact Brandon Bailey at 408-920-5022; follow him at Twitter.com/BrandonBailey. ANN M. LIVERMORE Age: 52 Residence: Woodside Family: Married, one daughter Career: Joined Hewlett-Packard after completing business school in 1982. Ran the commercial technology division since 2004. Was a candidate for CEO in 1999 when the job went to Carly Fiorina and was mentioned as a likely candidate in 2005, when Mark Hurd was selected. Named to HP's board of directors Monday but will run HP's services unit temporarily. Pay: Received $9.46 million in total compensation last year as executive vice president for HP's Enterprise Business division Personal: Took a five-week leave to have a kidney transplant in 2005, but reportedly was on the phone with Hurd and other executives just days after the surgery. Changes at Hewlett-Packard Ann Livermore, head of HP's commercial technology business, will move to the board and her division has been split into four groups. Todd Bradley, PC division chief, will lead "cross-business initiatives" in China, and printer division head Vyomesh Joshi will do the same in India. Randy Mott, the company's chief information officer, and Pete Bocian, the chief administrative officer, are leaving the firm. ___ To see more of the San Jose Mercury News, or to subscribe to the newspaper, go to http://www.mercurynews.com. Copyright (c) 2011, San Jose Mercury News, Calif. Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail [email protected], or call 866-280-5210 (outside the United States, call +1 312-222-4544) |