Carly Fiorina (born 1954), chief executive officer of Hewlett - Packard Company (HP) before its board fired her early in 2005 amid a power struggle, was one of only three women to head a Fortune 500 company. She drew praise for her streamlining and cost - cutting at HP, and was criticized for some controversial business decisions, most notably a 2002 merger with Compaq Computer Corporation. Fiorina had been ranked number one on "Fortune" magazine's list of the 50 most powerful women in business in the United States six times.
Fiorina was born Cara Carleton Sneed on September 6, 1954, in Austin, Texas. Her father, Joseph Sneed, was a law professor who also served as a federal appeals judge and a deputy attorney general under President Richard Nixon; her mother, Madeline Sneed, was an abstract artist. Fiorina was named for several men on her father's side of the family named Carleton who had died in the Civil War. Fiorina's parents and other relatives decided that the boys named in their honor would be called Carleton, the girls Cara Carleton. Fiorina was raised primarily in the San Francisco Bay Area, although the family also lived in North Carolina, Texas, Connecticut, and New York, as well as Ghana and England, due to her father's career. Fiorina attended five high schools on three continents, influencing her ability to thrive in new situations, according to a 2002 interview in Fortune. "I learned that people are fundamentally the same wherever you go," she said. "Connecting, and always being the outsider, which I was, is about adapting."
Launched Lucent Technologies
After graduating from high school, Fiorina attended Stanford University in Palo Alto, California, where Hewlett - Packard is based. While a student there, she kept the books and answered phones at a hair salon and, coincidentally, worked for a time in HP's shipping department. Following her graduation from Stanford in 1976, she entered law school at the University of California, Los Angeles, but dropped out after only one semester. She worked a series of jobs over the next several years, including teaching English in Bologna, Italy. She became interested in business while working as a receptionist at a brokerage firm in New York, and enrolled in graduate school at the University of Maryland, College Park, where she received a master's degree in marketing.
Following graduate school, Fiorina entered a management training program at AT&T and stayed with the company after she finished it. Her duties there included overseeing a portion of the company's government contracts. Fiorina became involved in the sale of $25 billion in telecommunications equipment to the United States General Services Administration, establishing herself in handling large deals. Fiorina was promoted several times and became an executive in the network systems division, which handled the manufacturing of telephone equipment. She helped set up joint ventures with Asian companies and by 1990 became the first women to be appointed an officer in the division. She married fellow AT&T executive Frank Fiorina, who is now retired, in 1985, and earned a master's degree in business from the Sloan School of Management at the Massachusetts Institute of Technology. Fiorina helped raise her husband's children from another marriage; she was previously married as well.
By 1991, Fiorina had been named vice - president of network systems, and by 1995 she was running its North American sales division. In 1995, she headed AT&T's creation of a spinoff company, dictating strategy, managing the initial public offering, and developing a new name and corporate image. That company became Lucent Technologies, and Fiorina headed its global services provider division, which provided networking equipment to telecommunications companies and internet service providers. She became president of global services in 1998, and the division achieved $19 billion in revenues that year. Lucent became a well - known name in the field of telecommunications equipment manufacturing, and Fiorina was largely credited with the company's success. In 1998, she was named number one on Fortune magazine's inaugural list of the 50 most powerful women in American business, a ranking she would maintain annually until 2004. Fiorina bristled at the designation, according to a quote in a 2002 issue of Fortune. "Business shouldn't be like sports, separating the men from the women," she said.
Chosen to Head HP
In 1999, following an intensive search that involved lengthy interviews and a 900 - question psychological test, Fiorina was hired as the chief executive officer of the computer and imaging company Hewlett - Packard, becoming the first person from outside the company to take this position. Fiorina took on a bureaucracy - laden company whose corporate culture reflected the paternalistic vision of William Hewlett and David Packard, who founded the company in a Palo Alto garage in 1939. "People were so busy building consensus that things didn't get done," Quentin Hardy wrote in a 1999 issue of Forbes. "Under the David Packard approach, new product lines split off into autonomous units, and scores of disparate operations populated the four main businesses - ink - jetprinters, laser printers, servers, and PCs [personal computers]. HP wound up with multiple product logos and a hundred different brand names, such as OfficeJet, Pavilion, and Vectra. It ran a thousand different intranet training sites, 40 internal help desks and 34 unlinked customer databases."
Fiorina took a hard - edged approach to change, intimating that layoffs were eminent soon after taking charge. Responding to a rumor that up to 25 percent of HP staff might be dismissed, Fiorina responded, according to Forbes in 1999, "I'm not sure about that, but if one - quarter of the people in HP don't want to make the journey, or can't take the pace, that's the way it has to be." By 2001, Fiorina planned to lay off 3,000 managers and had replaced 30 percent of the company's highest - ranking employees. "People should depart with dignity, but don't confuse that with the departure being an inappropriate choice," she said, as quoted in a 2001 Forbes edition. She also issued an ultimatum to HP sales staff: if they could not produce, they, too, should leave. Fiorina tended to operations and sales as well. She consolidated several disparate units and masterminded a unified corporate identity, under a new, simplified "HP" logo. She negotiated exclusive purchasing agreements with Ford Motor Company and Delta Airlines. Later major clients included General Electric, the Walt Disney Company, and the United States Department of Homeland Security. Fiorina's charge - ahead tactics upset many on her team, however; Forbes in 2001 reported that a survey of 8,000 employees revealed widespread dissatisfaction, citing poor communication and inefficient implementation of changes.
In 2000, Fiorina attempted a buyout of the 31,000 - person consulting firm Pricewaterhouse Coopers, in an effort to boost HP's computer consulting arm. The deal fell through, however, after HP tried to lower its original $17.5 billion offer. "So instead of being a leading - edge services provider, this division still gets half its revenue from traditional product support, like fixing broken disk drives," Eric Nee wrote in Fortune. "Fiorina still hopes to build HP's rapidly growing consulting and outsourcing services . . . But without a major acquisition, HP will need to slogon for years before it can mount a serious challenge to IBM, the market leader."
Oversaw Compaq Merger
Fiorina made an even more controversial move in 2001, when she announced HP's plans to acquire Compaq. The sons of the company's founders, who sat on the company's board, opposed the $19 billion purchase but it narrowly passed, with 51 percent of the company's shareholders voting infavor of the deal. Walter Hewlett, son of founder William Hewlett, unsuccessfully sued Fiorina and HP, alleging manipulation in the vote.
While the merger signaled a victory for Fiorina, HP's performance in the wake of the deal was erratic. "HP shares are worth less today than on the day before the merger was announced or on the day it closed," the Economist said in 2004. "A consensus has emerged in the industry that the new HP, the tech industry's most sprawling conglomerate, has lost its focus and is being squeezed between two formidable rivals with much clearer business models, Dell and IBM." But even Fiorina's detractors would have trouble denying her work ethic, however. According to a 2002 issue of Fortune, her workdays typically began at 4:30 a.m. and ended at 10 p.m.
Ousted by HP's Board
The company doubled sales over five years, but its traditional printing business had still accounted for about 80 percent of the company's operating profits, mostly from selling replacement ink cartridges. Fiorina and HP's board, meanwhile, continued to battle over the direction of the company. "Several Wall Street analysts have called on HP to spin off its highly profitable printing business or sell its PC unit, arguing that the company was being squeezed between IBM's high - end services strategy and Dell's low - cost PC manufacturing," Scott Morrison wrote in the Financial Times.
On February 9, 2005, Hewlett - Packard's board fired her. Fiorina, Morrison wrote, "had drawn criticism for what was seen as an imperious leadership style." While she assembled a capable leadership team that was marketed better, according to Cliff Edwards of BusinessWeek, Fiorina had difficulty getting top executives to work together. "While I regret the board and I have differences about how to execute HP's strategy, I respect their decision," Fiorina said in a statement widely published in the media. She received a severance package estimated at $21 million.
In rise and fall, Fiorina made headlines. "If Carly Fiorina hadn't come along, the media would almost have had to invent her," Bruce Horovitz wrote in USA Today. "For years, the media and Fiorina danced a celebratory dance." That Fiorina was a female in the trendy, male - oriented, high - tech business, combined with her own public - relations savvy, intensified the media's fascination with her, Horovitz added.
Women executives saw one of their own in Fiorina. "She can go out and tell the story of what its like. We need to see other women in positions of success," Delia Clark, owner of Baroness Coffee in Denver, said at a conference of female business owners in that city, according to Kimberly S. Johnsonin the Denver Post. "CEOs climbing the ladder is one thing; surviving is another."
Books
Business Leader Profiles for Students, Vol. 2, Gale Group, 2002.
Periodicals
Economist, December 15, 2001; August 21, 2004.
Financial Times, February 10, 2005.
Forbes, December 13, 1999; June 11, 2001.
Fortune, July 23, 2001; November 18, 2002.
Time, December 2, 2002.
Online
"Carly Fiorina," Biography Resource Center Online,http://galenet.galegroups.com (December 1, 2004).
"Media Always Fascinated with Fiorina," USA Today, February 9, 2005, http://www.usatoday.com/money/industries/technology/2005-02-09-cool-carly - x.htm (February 10, 2005).
"Where Fiorina Went Wrong," BusinessWeek online, February 9, 2005, http://netscape.businessweek.com/technology/content/feb2005/tc2005029 - 1044 - tc024.htm (February10, 2005).
"Women Talk of Fiorina's Rise," Denver Post, February 10, 2005, http://www.denverpost.com/Stories/0,1413,36%257E33%257E2702736,00.html (February 10, 2005).
| Carly Fiorina | |
|---|---|
| Born | Cara Carleton Sneed September 6, 1954 Austin, Texas, U.S. |
| Alma mater | Stanford University (BA) University of Maryland, College Park (MBA) Massachusetts Institute of Technology (MS) |
| Occupation | Business Executive Politician |
| Political party | Republican |
| Spouse | Todd Bartlem (1977–1984) Frank Fiorina (since 1985) |
| Signature | |
| Website | |
| carlyfiorina.com | |
Carly Fiorina (born Cara Carleton Sneed; September 6, 1954) is an American business executive and a former Republican candidate for the United States Senate representing California. Fiorina served as chief executive officer of Hewlett-Packard from 1999 to 2005 and previously was an executive at AT&T and its equipment and technology spinoff, Lucent. She currently serves on the boards of several organizations.
Fiorina was considered one of the most powerful women in business during her tenure at Lucent and Hewlett-Packard. The spinoff, from HP, of Agilent Technologies – which had been initiated by her predecessor, Lew Platt – was completed shortly after she joined the company in 1999. Under her leadership, in 2002, the company completed a contentious merger with rival computer company Compaq. During her tenure, HP stock lost half its value.[1] In 2005, Fiorina was forced to resign as chief executive officer and chairman of HP following "differences [with the board of directors] about how to execute HP's strategy."[2]
In 2008, Fiorina served as an advisor to Republican presidential candidate John McCain. In November 2009, Fiorina announced she would challenge incumbent Democrat Barbara Boxer for her United States Senate seat representing California.[3] On June 8, 2010, Fiorina won the Republican primary election, but lost the general election on November 2, 2010 to Boxer.[4]
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Fiorina was born as Cara Carleton Sneed in Austin, Texas, on September 6, 1954,[5] the daughter of Joseph Tyree Sneed III – a law school professor, dean, and federal judge – and Madelon Montross (née Juergens), a portrait and abstract artist.[6]
Fiorina attended Channing School in London, and later attended Charles E. Jordan High School in Durham, North Carolina, for her senior year; the family relocated frequently during this time. She received a Bachelor of Arts in philosophy and medieval history from Stanford University in 1976. During her summers, she worked at a hair salon and as a secretary for Kelly Services.[7] She attended the UCLA School of Law in 1976 but dropped out[8] after one semester and worked as a receptionist for six months at a real estate firm Marcus & Millichap, moving up to a broker position before leaving for Italy, where she taught English.[9] Fiorina received a Master of Business Administration in marketing from the Robert H. Smith School of Business at the University of Maryland, College Park in 1980. She received a Master of Science in management from the MIT Sloan School of Management under the Sloan Fellows program in 1989.
She joined AT&T in 1980 as a management trainee and rose to become a senior vice president overseeing the company's hardware and systems division. In 1995, Fiorina led corporate operations for the spinoff from AT&T of Lucent, reporting to Lucent chief executive Henry B. Schacht;[10] she played a key role in planning and implementing the 1996 initial public offering of stock and company launch strategy.[11][12] Later in 1996, Fiorina was appointed president of Lucent's consumer products business, reporting to Rich McGinn, president and chief operating officer.[12] In 1997, she was appointed chairman of Lucent's consumer communications joint venture with Philips consumer communications.[13] Later that year, she was named group president for the global service provider business at Lucent, overseeing marketing and sales for the company's largest customer segment.[14][15]
In 1998, Fortune magazine named her the "most powerful woman in business" in its inaugural listing, and she was included in the Time 100 in 2004 and remained in the Fortune listing throughout her tenure at HP. Fiorina was #10 on the Forbes list of The World's 100 Most Powerful Women for 2004.[16][17][18][19][20][21][22] She became regarded by many as being the first woman to head up a Fortune 20 company, and to have overcome the metaphorical "glass ceiling".[23][24][25]
In July 1999, Hewlett-Packard Company named Fiorina chief executive officer succeeding Lewis Platt and prevailing over the internal candidate Ann Livermore.[26] She became the first woman to lead a Fortune 20 company.[27] Fiorina immediately became a highly visible chief executive, and remained so throughout her tenure at the company with a vast array of engineering talent at her disposal.[28]
Fiorina proceeded to reorganize HP, and merge the part she kept with the PC maker Compaq. Although the decision to spin off the company's technical equipment division predated her arrival, one of her first major responsibilities as chief executive was overseeing the separation of the unit into the standalone Agilent Technologies. Fiorina proposed the acquisition of the technology services arm of PricewaterhouseCoopers for almost $14 billion but withdrew the bid after a lackluster reception from Wall Street. Following the collapse of the dot-com bubble, the PwC consulting arm was acquired by IBM for less than $4 billion.[29] In 2001, Fiorina was named one of the thirty most powerful women in America by Forbes magazine.[30] In early September of 2001, in the wake of the bursting of the Tech Bubble, Fiorina announced the controversial merger with Compaq, a leading competitor in the industry. Fiorina fought for the merger, and it was implemented despite strong opposition from board member Walter Hewlett (the son of company co-founder William Hewlett) who claimed that the merger was being pursued by Fiorina in desperation to make a strategic decision and to give her some breathing space from Wall Street.
He launched a proxy fight against Fiorina's efforts, which failed.[31][32] The Compaq merger[33] created the world's largest personal computer manufacturer by units shipped,[34] a position the company lost in 2003 and regained in 2006.[35]
Fiorina presented herself as a realist regarding the effects of globalization. She has been a strong proponent, along with other technology executives, of the expansion of the H-1B visa program.[36] In January 2004, at a meeting to "head off rising protectionist sentiment in Congress," Fiorina said: "There is no job that is America's God-given right anymore. We have to compete for jobs as a nation."[37][38][39] While Fiorina argued that the only way to "protect U.S. high-tech jobs over the long haul was to become more competitive [in the United States]," her comments prompted "strong reactions" from some technology workers who argued that lower wages outside the United States encouraged the offshoring of American jobs.[40] Fiorina responded against protectionism in an editorial in the Wall Street Journal, writing that while "America is the most innovative country," it would not remain so if the country were to "run away from the reality of the global economy."[41]
In early January 2005, the Hewlett-Packard board of directors discussed with Fiorina a list of issues that the board had regarding the company's performance.[42] The board proposed a plan to shift her authority to HP division heads, which Fiorina resisted.[43] A week after the meeting, the confidential plan was leaked to the Wall Street Journal.[44] Less than a month later, the board brought back in Tom Perkins and forced Fiorina to resign as chairman and chief executive officer of the company.[45] The company's stock jumped on news of Fiorina's departure.[46] Under the company's agreement with Fiorina, which was characterized as a golden parachute by some, she was paid slightly more than $20 million in severance.[47]
Outside judgments on Fiorina's tenure at HP are mixed. In 2008, Infoworld grouped her with a list of products and ideas as flops, declaring her to be the "anti-Steve Jobs" for reversing the goodwill of American engineers and for alienating existing customers.[48] In 2008, Loren Steffy of The New York Times suggested that the EDS acquisition well after Fiorina's tenure was evidence that her actions as CEO were justified.[49]
After resigning from HP, Fiorina was named to several board memberships. She was named to the boards of directors at Revolution Health Group[50] and computer security company Cybertrust.[51] The following year, she became a member of the board of directors for chip maker Taiwan Semiconductor Manufacturing Company.[52] She joined the board of trustees of the Massachusetts Institute of Technology and the Foundation Board of the World Economic Forum. She is an Honorary Fellow of the London Business School.[53][54][55][56]
Fiorina received significant media exposure before and during her tenure at HP, speaking at many business conferences and appearing on the cover of numerous business magazines. In the years since leaving HP, Fiorina has maintained her visibility in the media. In a commencement address in May 2005, Fiorina said about her tenure at Hewlett-Packard:
The worst thing I could have imagined happened. I lost my job in the most public way possible, and the press had a field day with it all over the world. And guess what? I'm still here. I am at peace and my soul is intact.[57]
During an interview with Charlie Rose, Fiorina said she believed that her leadership was strong during her tenure with Hewlett-Packard, and that the Compaq merger was a critical step for the company, although the merger was misunderstood by the board of directors.[58] In October 2006, Fiorina released an autobiography, Tough Choices, about her career and her views on such issues as what constitutes a leader, how women can thrive in business, and the role technology will continue to play in reshaping the world. Fiorina signed on with the Fox Business Network to become a business commentator on the network.[59] She is Chairman and CEO of Carly Fiorina Enterprises where, according to her political campaign Facebook page, she is "bringing her unique perspective and experience to bear on the challenging issues of our world, championing economic growth and empowerment for a more prosperous and secure world".[60] She has appeared at many public events. She rang the opening bell of the Wall Street stock market on the official day of the HP-Compaq merger and in 2000 she was the ceremonial host opening the largest EasyInternetcafé at Times Square and the opening of the Epcot ride Mission: SPACE.[61] In 2004, Fiorina was a member of the President's Commission on Implementation of United States Space Exploration Policy, which produced a report for George W. Bush. She has appeared many times on TV such as in 2007 on Real Time with Bill Maher.
Fiorina has and continues to be involved with many business leadership activities including:
In 2008, Fiorina joined as a part of the Senator John McCain's presidential campaign. In early 2008, Fiorina was referred to in media sources as a potential vice presidential candidate.[72][73] On March 7, 2008, Fiorina was named fundraising chairman for the Republican National Committee's "Victory" initiative. She was also a "point person" for the McCain campaign on issues related to business and economic affairs.[74] Fiorina's severance package from Hewlett-Packard in 2005, was viewed by some as a political liability during the campaign.[75][76][77]
On September 3, 2008, Fiorina addressed the Republican National Convention. Earlier that day, she defended the selection of Sarah Palin as McCain's running mate and said that Palin was being subjected to sexist attacks, a charge she repeated a few days later in response to one of the Saturday Night Live parodies of Sarah Palin.[78][79][80] In response to questions during a radio interview on September 15, 2008, she stated that Palin lacks the experience to run a major company like Hewlett-Packard, "[b]ut that's not what she's running for. Running a corporation is a different set of things." Fiorina later amended her comment, stating that none of the candidates on either ticket had the experience to run a major corporation.[81][82][83] After media coverage of her comments, one of her scheduled appearances on behalf of the campaign was canceled, although Fiorina continued to chair the party's fundraising committee.[84][85][86][87][88]
On November 4, 2009, Fiorina formally announced her candidacy in the 2010 Senate election in a bid to unseat incumbent Barbara Boxer.[89][90][91][92] Fiorina's campaign in the Republican primary for that seat received a number of endorsements,[93] including one from Sarah Palin in the form of a Facebook note.[94][95][96] Her campaign ad about Republican rival Tom Campbell featuring a "demon sheep" created international, mostly negative, publicity.[97][98] After the ad went viral, the California Democratic Party created a parody of the ad depicting Fiorina herself as a demon sheep.[99]
On June 8, 2010, Fiorina won the Republican primary election for Senate with over 50 percent of the vote, beating Campbell and State Assemblyman Chuck DeVore.
The Los Angeles Times research of public records indicated Fiorina had failed to vote in most elections. Fiorina responded: "I'm a lifelong registered Republican but I haven't always voted, and I will provide no excuse for it. You know, people die for the right to vote. And there are many, many Californians and Americans who exercise that civic duty on a regular basis. I didn't. Shame on me."[100][101]
The Los Angeles Times noted that Fiorina has conservative positions on certain social issues. She personally opposes abortion and, as a private citizen, stated that she voted for Proposition 8, which defined marriage as a union between one man and one woman, overturning a court ruling that same-sex couples had a right to marry.[102] Following an August 4, 2010, federal court ruling that Proposition 8 was unconstitutional, Fiorina expressed disagreement with the ruling, saying that California voters spoke clearly against same-sex unions when a majority approved the proposition in 2008.[103] She has stated that she opposes litmus tests for Supreme Court nominations and does not favor a federal personhood amendment.[104] Fiorina has called climate change a "serious issue" but claims that the science surrounding global warming is inconclusive, saying "I think we should have the courage to examine the science on an ongoing basis."[105] In a campaign ad, Fiorina also likened Boxer's concerns over global warming to worrying about "the weather."[106] She accepted large contributions from the coal industry[107] as well as Koch Industries[108] Fiorina opposes the cap and trade legislation supported by Boxer, and thinks efforts to control greenhouse gases will cost 3 million jobs and are "massively destructive".[109][110] The 2010 United States Senate election in California took place on November 2, 2010. Boxer won the general election, defeating Fiorina 52.2% to 42.2%
Fiorina (then Cara Carleton Sneed) married Todd Bartlem, a Stanford classmate, in June 1977. They divorced in 1984.[111] In 1985, she married AT&T executive Frank Fiorina. It was the second marriage for both. She helped to raise her two stepdaughters Traci and Lori Ann. They attempted to have children together but, as Fiorina puts it: "That wasn't God's plan."[112][113][114] Fiorina and her husband live in Los Altos Hills, California.
On February 20, 2009, Fiorina was diagnosed with breast cancer. She underwent a double mastectomy[115] at Stanford Hospital on March 2, 2009, followed by chemotherapy, which caused her to temporarily lose her hair, and later radiation therapy.[116] She was given "an excellent prognosis for a full recovery."[117][118] Early in her campaign for the United States Senate seat held by Barbara Boxer, Fiorina told a group of supporters: "I have to say that after chemotherapy, Barbara Boxer just isn't that scary anymore."[119]
| Wikimedia Commons has media related to: Carly Fiorina |
| Wikiquote has a collection of quotations related to: Carly Fiorina |
| Business positions | ||
|---|---|---|
| Preceded by Richard Hackborn |
Chairman of Hewlett-Packard 2000–2005 |
Succeeded by Patricia C. Dunn |
| Preceded by Lewis E. Platt |
Chief Executive Officer of Hewlett-Packard 1999–2005 |
Succeeded by Robert Wayman |
| President of Hewlett-Packard 1999–2005 |
Succeeded by Mark Hurd |
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| Party political offices | ||
| Preceded by Bill Jones |
Republican nominee for U.S. Senator from California (Class 3) 2010 |
Most recent |
| Preceded by Orrin Hatch |
Vice-Chairman of the National Republican Senatorial Committee 2011-present |
Incumbent |
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