SEC 10Q filing by CPQ today according to News.Com...
John
CEO search may slow decision-making
By Michael Kanellos and Jeff Pelline
Staff Writers, CNET News.com
May 14, 1999, 2:55 p.m. PT
Compaq's search for a new chief executive could lead to delays in strategic
decision making, as well as create employee retention concerns, the PC maker
said in a regulatory filing today.
"While the office of the chief executive is moving quickly to make operational decisions,
the absence of a chief executive officer, particularly in combination with the business
issues now confronting Compaq, could lead to delays in strategic decision-making as well
as employee retention issues that could complicate the timely implementation of
operational decisions," the company said in a "10-Q" filing with the Securities and
Exchange Commission today.
Compaq previously had downplayed the impact that the CEO search would have on
operations. As reported, the company's board forced the resignation of CEO Eckhard
Pfeiffer last month.
Since then, the exodus of executives has accelerated. (See related story.)
The filing also disclosed that Compaq paid about $307 million in cash to acquire Zip2. The
deal was completed in April.
For the quarter ended March 31, employee separations to restructuring at Compaq was
2,051. The "net headcount reduction since the date of the Digital acquisition...was about
14,200," the filing said. |
