Compaq Computer announced yesterday that Michael Capellas, its president and CEO, is taking the additional position of chairman - a job he takes over from Benjamin Rosen, who had headed the company's board of directors since 1983.
The appointment of Capellas as chairman is effective immediately, Compaq said. The Houston-based computer maker added that Rosen, 67, is retiring from its board, although he's being given the honorary title of chairman emeritus.
Capellas, 46, joined Compaq two years ago as CIO and was named president and CEO in the middle of last year, during a time when the company was reeling from weak financial results and inner turmoil highlighted by a series of management changes. For the first half of this year, though, Compaq reported a net profit of $US712 million, an increase from $97 million in the first six months of last year.
Revenue only rose 4 per cent in the first half of this year to $19.6 billion, up from the year-earlier figure of $18.8 billion. But Capellas said he expected Compaq "to deliver strong, double-digit revenue growth in the second half of the year" and added that he was "very confident" about meeting the company's financial objectives for both the third quarter and the year as a whole.
Rosen was a founding member of Compaq's board in 1982 and was named chairman a year later. He also served as acting CEO for four months last year after Capellas' predecessor, Eckhard Pfeiffer, was forced out of the company by the board. In a statement, Rosen said he has "complete confidence" in Capellas' ability to lead Compaq.