Meg Whitman

HP names Meg Whitman new President and CEO, gives Leo Apotheker the Boot

Well, in a period less than one year on the job as HP's top dog Léo Apotheker is out, and former eBay CEO and one time candidate for California governor Meg Whitman is in. The move was hardly unexpected, but it very quickly developed from quiet mumblings and rumors to full-fledged fact this afternoon. It was initially expected that Whitman should only be stepping in as an interim solution, just another person passing through the revolving door at the entrance to the CEO's office. But Whitman, a current board member is in for the long haul. She is stepping in at a crucial and somewhat difficult time for the company that has seen its stock price plummet 47%, its $1.2 billion mobile OS flounder and is considering spinning off its PC business. She is no stranger to controversy (simply refer to her short tenure with Goldman Sachs) and was an essential part in growing eBay from a startup with just a couple of dozen staff members to one of the most popular destinations on the internet so, at least she is accustomed of having a few curve balls in her way.

In a statement, Whitman said, "I am honored and excited to lead HP. I believe HP matters it matters to Silicon Valley, California, the country and the world." The company also announced today that Ray Lane is moving from a non-executive chairman role to executive chairman of the board of directors, and that the board intends to appoint a lead independent director "promptly." HP's press release and some information from the company's investor call announcing the decision are right after the break.

At least, for the immediate future, it does not appear the installation of Whitman at the head of HP is going to lead to a major change of course. The plans for the Personal Systems Group and web-OS remain the same as those Léo Apotheker laid out in August  an announcement new executive Chairman Ray Lane admitted the company struggled with. In fact, Whitman said the "strategy is right," the problem lies in the execution. A spin off that PSG is still under consideration, and the new CEO said a decision will be made before the end of the year. Splitting off the PC business will only happen if it is deemed to be stronger as an independent entity, though it may still keep the HP branding. Meanwhile the company is "exploring options to optimize the value of web-OS."