HP Enterprise Boss Veghte to Exit Ahead of Split
Bill Veghte, Hewlett-Packard (HPQ) Enterprise Group vice president and former chief operating officer, will exit the company later this summer ahead of its planned November split into two separate, publicly-held entities.
Since last October when HP announced its intention to separate its PC and printer business from its enterprise operations, Veghte primarily has served as HP Enterprise separation leader in addition to his official capacity as Enterprise Group general manager.
“The decision to leave a company and people you are passionate about is never an easy one,” said Veghte. “It has been a privilege working with Meg and a great leadership team as we transform Hewlett Packard to help customers on their journey to the New Style of IT. HP is equipped to take the business to new heights with great leaders like Antonio Neri and Chris Hsu and the progress we have made over the last 4 years,” he said.
Veghte, who joined HP in 2010 as chief strategy officer and HP Software executive vice president, said he plans to pursue another opportunity.
“From the moment he arrived at HP, Bill has made a huge difference,” said Meg Whitman, HP chairman, president and chief executive. “He brings energy, insight, and leadership to everything he does. I am grateful for all he did to help me lead HP through the turnaround and into the separation. I know Bill will continue to enjoy great success in the years to come.”
Antonio Neri, a 20-year HP veteran who has led the Enterprise Group while Veghte focused on the separation, will assume the executive vice president and general manager roles. Neri is credited with helping to overhaul HP’s Server business and leading the company’s Networking and Technology Services business.
Chris Hsu, who will take on the chief operating officer role for HP Enterprise in the spinoff, will assume Veghte’s leadership role for HP Enterprise’s separation efforts.
HP has said it expects the tab for the split to run to some $2.75 billion–$1.8 billion in restructuring costs and $950 million in taxes. It recently added another $400 million to $450 million in what it called “dis-synergy” costs resulting from duplicating corporate jobs to the breakup costs.
In July, HP is expected to file SEC documents on the split, including the disposition and allocation of some 300,000 workers and its plans to divvy up its hundreds of locations and assets worldwide.
HP’s Q2 showed sliding revenue and earnings in every one of the vendor’s business segments. Sales for the quarter fell 7 percent from last year to $25.5 billion, while net income tumbled 21 percent to $1 billion. Per share earnings fell 17 percent to $0.55 a share.
The results amounted to the 14th year-over-year revenue decline in the vendor’s last 15 reporting quarters.