HP names new chief executive

HP has appointed Mark Hurd as its new president and chief executive, replacing Carly Fiorina who was ousted less than two months ago.

Under Fiorina's rule the company acquired Compaq, but lost the position of largest desktop computer maker. Fiorina also failed to build up a notable position in the services market.

"Mark came to our attention because of his strong execution skills, his proven ability to lead top-performing teams and his track record in driving shareholder value," said Patricia Dunn, HP's non-executive chairman.

"He demonstrated these skills by turning around NCR which, while smaller than HP, is a complex organization with multiple business segments. Additionally, his straightforward style has won the respect of employees, customers and investors."

Hurd has spent the past 25 years of his professional career at NCR, where since March 2003 he served as chief executive. NCR makes cash machines and other financial products for the retail sector, and was spun off from telecoms giant AT&T in 1997.

Fiorina put herself in the spotlight with high profile business decisions such as the Compaq acquisition, which caused friction among the board of directors. With the Hurd appointment, the board has picked an executive without any celebrity status and who is easier to control.

Hurd has the image of a cost cutter after he succeeded in rapidly turning around NCR after the company's revenues plummeted in 2002.

This image hints against a possible break-up of HP. Analysts have repeatedly called on the company to spin off its desktop business, claiming that it would perform better as a standalone unit.