Top Exec Quits Compaq

April 18, 1999 / 6:07 PM EDT / AP

With no public notice and little explanation, Compaq Computer Corp. President and CEO Eckhard Pfeiffer resigned Sunday along with the company's chief financial officer, Earl Mason.

The company's board formed an interim chief executive's office to handle day-to-day operations of the world's largest supplier of computer systems.

Compaq treasurer Ben Wells will assume Mason's duties at least on an interim basis. Mason will take over a company "in an unrelated industry," the company said. Pfeiffer did not reveal his immediate plans.

The Houston-based company has been under tremendous pressure from stockholders since it stunned Wall Street on April 9 by announcing its first-quarter earnings would be half of what analysts expected.

Compaq shares, which traded as high as 51 1/4 earlier this year, already had slipped by the time of the announcement and fell a full 23 percent on April 12, the first trading day after the gloomy earnings disclosure.

Compaq closed Friday at 23 5/8.

"Compaq has the best team anywhere in the industry. We have the people necessary to make the right changes that will reinforce our industry leadership," chairman Benjamin M. Rosen said. "We have re-energized this company before, and working together, we will do it again."

"Compaq has come a long way since I joined the company in 1983," Pfeiffer said. "We are a world leader in personal computing, enterprise computing and Internet applications."

Compaq has struggled to assimilate fellow computer maker Digital Equipment, which it acquired last year. Recession-weakened foreign economies also have dampened sales.

"Under Ben's guidance, I know this company will realize its potential, transforming the industry yet again," Pfeiffer said. "I am thankful to all employees at Compaq for their support and the chance to work with them."

The company has hired executive search firms to find permanent replacements for Pfeiffer and Mason.