COMPANIES Hewlett-Packard on Wednesday fired Carly Fiorina as chairman and chief executive, ending a tumultuous 5?-year tenure at the computer and printer maker.
The board insisted it remained committed to the company's business strategy but wanted a chief executive who would provide more ?hands-on? leadership and drive profitability.
HP's shares closed 6.9 per cent higher at $21.53 in New York on Wednesday.
An acquisition too far topples Fiorina
Carly Fiorina?s biography had been removed from the executive team page of Hewlett-Packard's website long before employees turned up for work to discover that their chief executive had departed.
Ms Fiorina had staked her reputation on the $19bn acquisition of Compaq Computer in 2002, but the company's server, storage and personal computer businesses have all since struggled.
In addition, Ms Fiorina had drawn criticism for what was seen as an imperious leadership style.
HP's shares have fallen by about 50 per cent since Ms Fiorina's appointment and continue to trade at a discount to rivals amid concerns about the company's ability to execute its strategy profitably.
Several Wall Street analysts have called on HP to spin off its highly profitable printing business or sell its PC unit, arguing that the company was being squeezed between IBM's high-end services strategy and Dell's low-cost PC manufacturing.
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Steve Milunovich, the Merrill Lynch technology analyst who last year called for a break-up of HP, said the board's declared intention to continue with its existing strategy made any big changes in direction unlikely.
He added, though: ?I think bringing in a new CEO increases the long-term chance of breaking it up.? HP named Robert Wayman, chief financial officer, as interim chief executive and said it would immediately begin a search for a permanent successor.
?We are looking to accelerate the growth of the company and we believe that requires a lot of hands-on execution,? said Patricia Dunn, a HP director who was named non-executive chairman of the board.
Ms Fiorina will receive a $21m severance package. ?While I regret the board and I have differences about how to execute HP's strategy, I respect their decision,? she said.
Her departure brings to an end a controversial leadership of what remains a Silicon Valley icon. The proposal to merger with Compaq sparked a high-profile battle of wills with Walter Hewlett, then board member and son of co-founder William Hewlett, who said the deal would dilute the value of HP's printing business.
Timeline: Fiorina?s tenure at HP
Carly Fiorina, chairman and chief executive of Hewlett-Packard, has had a tumultuous 5?-year run at the head of the troubled computer and printer maker.
Ms Fiorina won over investors by a narrow margin and earned the grudging respect of doubters by integrating the two companies ahead of schedule.
Wall Street grew dismayed by HP's tendency to post several strong quarters, only to disappoint by falling short of expectations.
Doubts about Ms Fiorina's performance were heightened last August, after the company missed its third-quarter targets. Sales and earnings recovered in the fourth quarter and Mr Wayman indicated that HP was on track to hit its targets when it reports again next week.
