Whitman says profits will be down, stocks tumble
HP CEO Meg Whitman predicted that the computer maker's fiscal 2013 profit wouldn't meet market estimates today, and shares in the company subsequently plunged below their nine-year low. Whitman also said that the company's turnaround efforts would take quite a while, Bloomberg reports today, a prediction reflecting the company's difficulties in maintaining margins as consumers increasingly opt for mobile devices over the PCs HP manufactures. HP stock dropped 13 percent on the day, closing at $14.91, their lowest point since 2002. Shares in the company have dropped 35 percent since HP was named CEO a year ago.
HP CEO to decide on PC business two months early
HP's new CEO Meg Whitman said on Tuesday that she wanted to accelerate the decision on HP's PC business to no later than the end of October. Speaking at the Most Powerful Women Summit, she wanted to move it up to faster than the December timeframe ousted CEO Leo Apotheker had leaned towards. She later explained to Reuters that the timing could move but that she was fully aware that the delay was creating doubts among buyers.
HP patterns Whitman CEO salary after Apple
HP in an SEC filing late Thursday outlined the payments for incoming CEO Meg Whitman and recently fired CEO Leo Apotheker. Hoping to tie Whitman's pay to performance, the company is emulating former chief Steve Jobs' model and paying her a base $1 per year. While she will get a company-standard $2.4 million bonus every year, her real pay will depend on how much HP's share value has grown over time.