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Hewlett-Packard Ousts CEO Carly Fiorina
Fiorina, 50, one of the most powerful women in business, said in a statement, "While I regret the board and I have differences about how to execute HP's strategy, I respect their decision. HP is a great company and I wish all the people of HP much success in the future."
Analysts said her departure would be good for the company, and HP shares jumped 10 percent in early trading.
"I would say there will be a boost to employee moral because internally people had become frustrated, certainly within the printing division," said Shannon Cross, a Wall Street analyst with Cross Research who tracks the printing industry.
Peter Sorrentino, chief investment officer of Bartlett & Co. in Cincinnati, also expressed relief at the management change.
"This was a move that we had long hoped they would take. We thought the stock, just from the imaging business, is worth $24 a share, and you were being impaired as a shareholder because of the other businesses," he said.
Shares of HP, a component of the Dow Jones industrial average, rose $2.06 to $22.20 in early trading on the New York Stock Exchange.
Robert Wayman, HP's chief financial officer, was named CEO on an interim basis and appointed to the board of directors of HP. Wayman rose through the ranks at HP after joining the company in 1969.
HP said a search for a new CEO was underway.
Patricia Dunn, vice chairman of Barclays Global Investors and a member of HP's board since 1998, was named non-executive chairman of the board.
MERGER HEADACHES
Fiorina, who joined HP as CEO in 1999, became a lightning rod for criticism from investors and some in the Silicon Valley establishment for pushing through the 2002 merger with rival PC maker Compaq. Continued ...
New York - Carly Fiorina was ousted by the board of directors of HP yesterday, much to the delight of Wall Street. Ms Fiorina's resignation was the result of a disagreement with the board over the future of the company. Often cited as America's most powerful businesswoman, Ms Fiorina presided over the multi-billion dollar merger between Hewlett Packard and Compaq Computers in 2002. 

The move comes after several months of intense speculation about her future with the company. Having promised billions in annual savings to the company from the 2002 merger, the combined company failed to keep pace with competitors such as Dell, or to deliver any significant increases in profits, particularly in the personal computer market. A recent investigation by Fortune magazine highlighted the fact that the firm's highly profitable printer business supported the lower-margin computer business. 

After the announcement, HP shares surged 10% on Wall Street against a generally poor performance by the major indices.