Unsung director is key in moves to fix Compaq
Article Abstract:
Longtime Compaq Computer Corp. director Robert Ted Enloe III has become a major figure in the company's management and the decision to oust Chief Executive Officer Eckhard Pfeiffer in April. Almost 13 years ago, Mr. Enloe joined the board of Compaq at the urging of L.J. Sevin, a founder of Compaq backer Sevin Rosen Funds. Having acquired almost 500,000 shares of Compaq, Mr. Enloe began to get more involved in the firm's activities. Mr. Enloe suggested that the board begin a wide review of CEO Pfeiffer's performance after hearing certain things at management sessions that he had attended. He began raising questions about the integration of Digital Equipment Corp., the lack of an Internet strategy and the continuing resignation of a number of well-regarded executives. In late February, after an embarrassing disclosure by the company's chief financial officer that sales were running below expectations, which caused a 15% drop in the firm's market value in one day, Chairman Benjamin Rosen and others began to listen to Mr. Enloe's suggestions for change. During a dinner meeting where directors debated firing Mr. Pfeiffer, Mr. Enloe came up with the proposal for three directors to fill the position of chief executive. Today, the three acting CEOs, Mr. Rosen, Mr. Enloe and director Frank P. Doyle, have been aggressively reshaping the company in preparation for hiring a new chief executive.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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Compaq board ousts Pfeiffer from CEO job
Article Abstract:
The board of Compaq Computer Corp. removed Eckhard Pfeiffer as CEO and replaced him with Benjamin M. Rosen. The move came after weak profit forecasts caused a sharp drop in share prices. Rosen said the decision was made because Compaq was failing to live up to growth expectations for the last two years. Pfeiffer had been successful in guiding Compaq during the early nineties, but did not seem up to handling Compaq since it acquired Digital Equipment and Tandem Computers. Another factor was that there was bad blood between Pfeiffer and Wall Street investors. The company is expected to conduct a reorganization under the new management.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
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