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Capellas Leaves HP

Hewlett-Packard Co. president Michael Capellas is leaving HP and quitting the board of directors "to pursue other career opportunities," the company announced in a statement on Monday.

The departure comes six months after the former Compaq Computer Corp. leader helped HP chairman and CEO Carly Fiorina engineer a hotly contested merger between the computer giants.

The Wall Street Journal is reporting that Capellas is the leading candidate to take over WorldCom Inc., the troubled telcom giant which is looking to replace outgoing CEO John Sidgmore and is seizing assets of former CEO Bernie Ebbers who took a $415 million personal loan from the company.

In a statement about leaving HP, Capellas said, "I'm comfortable making this move because of the progress of the integration, HP's market momentum and the strength of the management team."

Fiorina said she supported Capellas' move. "We've reached a natural transition point. Michael made a commitment to see the merger through, and now thanks to the hard work of the entire team, we are meeting or exceeding all of our integration targets," she said in a statement.

Capellas' position will not be replaced. Executives who had reported to Capellas will now report directly to Fiorina.

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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