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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: rupert1 who wrote (58494)	4/18/1999 9:20:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

This is what the Pommie nerds are saying at midnight in England. Apart from their reference to the new man being a woman, their suggestion that COMPAQ will go direct might be another talking point in the next few weeks. "We expect the new CEO -- whoever he or she is -- will accelerate the transition to a direct -mainly product sales strategy." ® _________________ The Register Posted 18/04/99 11:36pm by Drew Cullen Pfeiffer ousted in Compaq shakeup Compaq CEO Eckhard Pfeiffer has fallen on his sword. He resigned today, along with CFO Earl Mason. Chairman Ben Rosen will look after the shop along with vice chairmen Frank Doyle and Robert Ted Enloe - until a new CEO comes on board. Pfeiffer's departure looks like palace coup: remember, he got the job in the first place by persuading Rosen to dismiss Compaq founder Rod Canion. Mason's resignation may be co-incidental -- although its tempting to think he saw the wrting on the wall. Mason is off to be a CEO in another company outside the sector, according to Compaq. Did Pfeiffer lose the confidence of Rosen, who -- it is now clear -- is the most important man at Compaq? With Rosen's backing, Pfeiffer could have toughed out the recent bad press and share performance, following a spectacularly inept handling of company's recent bad quarter. Pfeiffer was promoted to the top to re-engineer Compaq as a leaner, more efficient company. Under Canion, the company had grown fat and flabby - and expected customers to pay up to three times more for Compaq PCs than new competitors. Compaq is fat and flabby again - despite Pfeiffer's much vaunted obsession with supply chain management. Too much management energy has been spent on the Digital takeover -- and the company is paying the price for its introspection. Compaq is also paying the price for its dependence on the channel. In the early eighties, this was the secret of its success. In the Internet-savvy late nineties, the channel is becoming a millstone round its neck. We expect the new CEO -- whoever he or she is -- will accelerate the transition to a direct -mainly product sales strategy. ®