HP hands chairman role to CEO Whitman as Whit

worth departs
named chief executive officer Meg Whitman as chairman of its board, giving her t
he responsibilities of Ralph Whitworth, the activist investor who is stepping down
from the post for health reasons. Pat Russo, a current director, was appointed lea
d independent director, and Klaus Kleinfeld, CE and chairman of !lcoa "nc., wa
s brought in, increasing the board#s membership to $%, the Palo !lto, California&b
ased compan' said in a statement on (rida'. Whitman, )*, is ta+ing over leaders
hip of a board that over the last decade had churned through four chief executive
s and signed off on ac,uisitions that burdened the compan' with debt. -nder Whi
tworth, )., who became chairman in %/$$, the board#s membership has changed
and none of the current lineup have been there for more than five 'ears. 01he mo
ve is somewhat surprising given the record of 2P and its board,3 said 4ill Kreher,
an anal'st at Edward 5ones 6 Co. who has a hold rating on the stoc+. 0Meg has
done a good 7ob executing the turn around.3 While 2ewlett&Pac+ard prefers to +e
ep the roles of chairman and CE separate, it will combine them if it#s in shareho
lders# interest, according to its corporate governance guidelines. "n such a case, i
t will promote an independent director to the lead director role, it sa's. 8ew techn
olog' Kate 2olderness, a spo+eswoman, said 2ewlett&Pac+ard wouldn#t commen
t be'ond its statement. With Whitworth and Whitman at the helm, 2ewlett&Pac+ar
d has cut 9:,/// 7obs, invested in new technolog' and replaced top executives. 1
he compan' has sought to revive its business amid a downturn in the PC industr
' as more consumers have turned to smartphones and tablets for their computin
g needs. 2ewlett&Pac+ard is on course to post a revenue decline of $; this fiscal
'ear, the closest it#s come to growth since fiscal %/$$, according to the average o
f anal'st estimates compiled b' 4loomberg. Whitworth is stepping down from 2e
wlett&Pac+ard to battle cancer, people familiar with the matter have said. 2e is als
o ta+ing a leave from his mone'&management firm. Russo has been a director of
2ewlett&Pac+ard since %/$$ and leads the 2R and Compensation Committee. Pri
or to !lcoa, Kleinfeld spent two decades at <iemens !=, rising to become the CE
of the industrial conglomerate. 0Meg and Pat are unwavering in their commitm
ent to the corporate governance, capital allocation and management incentive pri
nciples that drove our decisions these past three 'ears,3 Whitworth said in the sta
tement. 01he' will stic+ to and strengthen the critical practices and disciplines we#
ve put in place. 2P is in great hands.3 <hares of 2ewlett&Pac+ard, the second&big
gest computer ma+er, fell $.$; to >9:.:9 at the close in the 8ew ?or+, before Wh
itman#s appointment was announced. 1he stoc+ has gained %9; this 'ear
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