Capellas was "not happy in his current role at HP," said one person familiar with the situation. "He wasn't being utilized.". The former Compaq chief started to entertain offers as early as last summer, just a few weeks after the close of Compaq's merger with HP, the person said. HP recently started its first full fiscal year as a combined entity with Compaq. Capellas, along with Fiorina, also stumped to push through the HP-Compaq merger, which was marred by a bitter proxy fight. In recent months, however, it became clear Capellas missed being a CEO. Capellas has never been shy to express his desire--privately and publicly--to be a CEO of a company once again.
"When the merger was done, (HP) had hoped Michael would find the president's role a rewarding one, But he has said many times, publicly too, once a CEO, always a CEO," said a source, "It's not a surprise he is leaving.", Although there was speculation that Capellas could take over for Fiorina, sources said a switch wasn't likely, "The question of him replacing Carly is just ridiculous," said the source, noting HP's board backs Fiorina, "What was required of Michael was to dead and company iphone case adapt from being in a No, 1 position to being in a No, 2 position at a much larger company, Clearly, Michael couldn't find satisfaction in that transition."..
Although Capellas had talked of looking for a house in the San Francisco Bay Area, an HP employee noted that he never bought one. Instead, he was living in a house rented by HP on a short-term lease. Sources close to the company said Capellas had been looking for other jobs for some time. By leaving during the first year after the merger's close, Capellas can collect on substantial payments under the terms of his employment agreement, which was amended by Compaq's board after the merger plans were announced but before the deal closed.
As part of that contract, he will receive three times his base salary of $1.6 million and three times his target bonus of $3.2 million, He also gets seven months' worth of bonus for the current year, amounting to more than $16.2 million in payouts, Capellas will have to repay with interest a $2.5 million loan, but not an earlier $5 million loan that was forgiven by Compaq prior to the merger's close, according to an HP employee familiar with the matter, dead and company iphone case A source familiar with the situation said that HP had been planning to announce Capellas' departure later this week, but moved up the announcement after it was reported that Capellas was a candidate for the WorldCom job..
WorldCom or bust?One of the opportunities that may await Capellas is the CEO slot at downtrodden telecom company WorldCom. He is the front-runner to replace departing WorldCom Chief Executive John Sidgmore, but no deal has been finalized, according to sources. A WorldCom representative declined to comment. A source close to WorldCom could neither confirm nor deny that Capellas was a CEO candidate. Citing sources close to the matter, the The Wall Street Journal reported that WorldCom's board is enthusiastic about Capellas, but that the company also has had serious discussions with XO Communications CEO Dan Akerson and BellSouth Vice Chairman Gary Forsee. There is a fourth, unidentified candidate, the paper said.