HP CEO Meg Whitman tells shareholders of company split
The easiest way to make stockholders happy these days is to announce either 1) a new dividend, or 2) that you are splitting up the company. Both solutions, by the way, usually benefit the CEO in a way, too.
Bloomberg reported the news first last night, saying that Meg Whitman told shareholders that the software and services side of the business (the good side) will be called HP Enterprise and she will run it, while the PC and printer side (the bad side) will be called HP Inc. (assuming they can get the printer drivers reinstalled) and be run by Dion Weisler.
Oh, and for good measure, the company today announced a 10 percent increase in the amount of its regular quarterly dividend, to $0.176 per share. Shareholders, who rebelled at the Compaq merger under then CEO Carly Fiorina, will likely applaud this move – even as it tears apart the company.