Boston, MA 02/05/2014 (wallstreetpr) – Hewlett-Packard Company (NYSE:HPQ) in the coming weeks be without two of its one-time powerful executives, Todd Bradley and Dave Donatelli according to various reports. It is learnt that the two were reportedly sidelined by the reigning CEO Meg Whitman who joined the company on the agenda of turnaround in 2011.
Sources familiar with the situation cite that Bradley and Donatelli have appeared for interviews for their potential next jobs over the past several months, during which some sources say, they have not been regular at their Hewlett-Packard Company (NYSE:HPQ) workstation.
It is also revealed that in order to avoid bad publicity around the exit of the two men, a quite exit deal was struck. So then, Donatelli is expected to exit with between $8 and $10 million as part of the vesting agreement. He will however remain with the company until March. On his part, Bradley will take home about $12 million in the vesting agreement and he is expected to leave the company by the end of February.
What’s happening?
That the two executives are on the brink of bolting out of the struggling Hewlett-Packard Company (NYSE:HPQ) might generate more questions than answers. Yet according to people with insider knowledge, the exit of the two will enable Whitman to tighten her grip on the company towards a turnaround. The CEO is already midway through a five-year rebound plan. Yet a lot still remain a far target.
Restructuring has been identified under Whitman’s administration to be one of the strategies to return the once-dominate computing icon to stable grounds. Thus, letting go of Bradley and Donatelli whose various divisions have been non-performing is obviously part of that restructuring. Several other executives and high ranking officials have already been purged in the ongoing deep restructuring efforts spearheaded by Whitman.
Non-performing divisions
Donatelli’s enterprise division realized 9 percent decline in sales in fiscal 2013 third quarter. That didn’t go down well with Whitman who acted by replacing him in the position. He was reportedly being blamed for contributing to Hewlett-Packard Company (NYSE:HPQ)’s poor quarterly results.
Bradley was last June removed from the leadership of the company’s largest division which is personal computers and device. He was instead mandated to take care of the company’s China business. It is the lackluster performance of the personal computers and device division that resulted in Hewlett-Packard Company (NYSE:HPQ) being overtaken by Lenovo as the largest PC maker of world.
