| BUSINESSWEEK ONLINE : MAY 3, 1999 ISSUE | ||||||||
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| INFORMATION TECHNOLOGY
A Tough Call, but the Right One Having the board chairman and CEO be different people is a touchstone of good corporate governance. Compaq Computer Corp., where Benjamin M. Rosen has served as chairman for 16 years, is a case study in how effective a board can be. Some critics contend the board should have ousted CEO Eckhard Pfeiffer sooner, but less than three months ago, Compaq stock was trading at near-record highs. But few directors have more carefully considered their responsibilities than those at Compaq. Fewer still are as engaged in helping to set strategy in an atmosphere known for candor. When the board fired CEO Joseph R. Canion in 1991, some say it acted prematurely. That move delivered results for investors. This decision provides an important lesson. No board, no matter how independent, can prevent investor losses. But the best boards act swiftly to prevent a crisis from engulfing a company. Led by Rosen, Compaq's board has done that again. By John A. Byrne _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ |
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Can Compaq Catch Up? TABLE: What Needs Doing TABLE: Compaq Hits Another Pothole CHART: Compaq's Stock Price A Tough Call, but the Right One Commentary: High-Tech Honchos Needn't Come from High Tech INTERACT E-Mail to Business Week Online | |||
