(Image Source: Jennerjahn Report)

BY ANNA BURKART

Today HP announced it’s new CEO Meg Whitman, former eBay CEO and unsuccessful republican candidate for California’s 2011 gubernatorial election. Whitman will be replacing Léo Apotheker. Fox Business reports, Apotheker’s departure comes amidst a steady downward spiral for the company.   

“As expected, it will be former eBay CEO Meg Whitman who will take the reigns. Whitman would replace Léo Apotheker who’s been in the top spot for less than a year. During his tenor, the company has cut its sales forecast three times and the stock has fallen nearly 50 percent under his reign. Whitman will be HP's eighth CEO since 1999.”

Although there were initial reports that Whitman, who sits on HP’s board of directors, would be accepting an interim CEO position, it has been confirmed that the position will be permanent. According to All Things Digital, “short term” isn’t what Whitman does.

"Meg is not someone who wants to be a steward of a process to find another CEO for HP,’ said one source. ‘She wants to run the company and be a strong leader for what she considers an important tech powerhouse.’
That makes sense, since at only 55 years old, sources said Whitman is not inclined to want to do a temporary fix-it job on a company as troubled and complex as HP.”

Although some believe Whitman is taking on this position to help better the company, one San Francisco Chronicle writer suggests this is a political move.

“Whitman's return to the public spotlight would suggest the effectiveness of a carefully planned effort to reshape her public image. This week, Whitman's family foundation announced a $5 million donation to Silicon Valley charter schools… Whitman's possible renaissance is even more interesting given that the post she may assume once was held by Carly Fiorina, who ran an unsuccessful GOP campaign last year against incumbent U.S. Sen. Barbara Boxer, a Democrat.”

Political aspirations aside, Whitman has a proven track record as CEO from her time at eBay, and stocks seem to indicate Wallstreet’s approval of HP’s decision. CNBC.

SUE HERERA: “Does she have Wall Street’s confidence?”
KARA SWISHER: “It’s sort of a wait and see ind of thing. But she certainly was when she was CEO of eBay. She did very well. That stock went through the moon and she made a fortune doing it... we first actually broke the news yesterday about the possibility and it went up about 11 percent on the news that they were going to oust Léo Appataker and put her in place.”

But many believe Whitman’s work at eBay did not qualify her as the best candidate. In a Bloomberg interview, David Garrity discusses his doubts on the company’s choice

DAVID GARRITY: “Meg Whitman, clearly not someone who understands either  hardware or services.”
CAROL MASSAR: “Do you think that’s a crazy idea”
DAVID GARRITY: “I think it’s a crazy idea. I think a much better person would be the non-executive chairman Ray Lane....I think what the company needs as a CEO is someone who isn't so much of a communicator but really somebody who is more fundamentally a leader and has strong in-depth understanding of the areas and businesses in which Hewleett-Packard operates and understands well from that perspective the competitive challenges they must meet.”