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Pfeiffer blasts Compaq
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April 21, 1999: 3:36 p.m. ET
Ousted CEO says he was unfairly dismissed by PC maker's board
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NEW YORK (CNNfn) - Former Compaq Chief Executive Eckhard Pfeiffer blasted the company's directors Wednesday, saying they should have given him more time to turn the company around.
In an exclusive interview with CNNfn's Bruce Francis, Pfeiffer also criticized the company's 11 outside directors for relying too much on the word of disgruntled, former executives when deciding whether to seek his resignation.
"The feedback I've been getting from many, many people is that the Compaq board should hang their heads in shame," he said.
Pfeiffer was forced to hand in his resignation Sunday after being summoned to a special board meeting by Compaq (CPQ) Chairman Benjamin Rosen, which also led to the resignation of financial chief Earl Mason.
Compaq's disappointing first-quarter results may have been the final straw for Pfeiffer, but the company's board had been considering his removal for weeks. Rosen said the board met at the end of March and discussed whether Pfeiffer should continue as chief executive.
Pfeiffer said he wasn't surprised by the turn of events, but he told CNNfn that Compaq's board executed poor judgment in forcing his resignation.
"Rosen has repeatedly across the board said [Compaq's] strategy is right," Pfeiffer said. "Compaq is the leader in consumer PCs, which documents that we can lead at the lowest price and make a profit. In that respect, we can operate more efficiently than Gateway (GTW) or Dell (DELL)."
Pfeiffer also said Compaq's board engaged in "behind-the-back" discussions and relied on information from disgruntled former Compaq executives.
"I believe the board contacted the wrong sources," he said. "I would have expected more openness. I also would have expected after the March board meeting that I would have had a chance to present in the April meeting a recovery plan."
Compaq will hold its annual shareholders meeting Thursday in Houston.
A Compaq spokesman declined comment on Pfeiffer's remarks.
Compaq shares were down 1/4 at 23-3/4 in late-afternoon trading.
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