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Compaq's Rosen retires
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September 28, 2000: 5:47 p.m. ET
Company's new president, CEO Capellas is now chairman of the board
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NEW YORK (CNNfn) - Ben Rosen, one of the founders of Compaq Computer Corp., is retiring after serving as its chairman for nearly 20 years.
Michael D. Capellas, Compaq's newly minted president and chief executive, will assume the title of chairman, effective immediately, the company said.
 Rosen, 67, was a founding member of Compaq in 1982 and was appointed chairman of the board in 1983. Capellas, 46, took over as the company's president and chief executive last summer.
"Michael's appointment is a natural and appropriate step for Compaq at this moment in our history," Rosen said. "After almost two decades as chairman of the board, I have complete confidence in Michael to lead Compaq during the next great phase of the company's growth and global expansion."
In appreciation for his years of contribution to the company, Rosen was recognized with the honorary title of chairman emeritus, Compaq said.
Since he replaced Eckhard Pfeiffer, who was ousted by Compaq's board in April 1999, Capellas has had some measure of success at turning the company around.
 During his tenure, Capellas has focused on restoring the struggling company to profitability. Compaq achieved that goal largely by reducing expenses. In the most recent quarter, Compaq reported that its operating expenses had decreased five percentage points from the same period last year.
The company also reported that its commercial PC business had returned to profitability one quarter earlier than it had expected.
However, the company still is struggling to find its footing in the growing market for computer services. Profit in the company's Consumer and Global Services divisions declined in the last quarter.
But investors seem to have faith in his ability to get the job done. Compaq shares over the past year have risen more than more than 68 percent from a 12-month low of $18.25 last fall.
Compaq (CPQ: Research, Estimates) is the world's leading supplier of personal computers. Its shares ended Thursday's session on the New York Stock Exchange up $1.60 at $30.75 ahead of the announcement.
During his time as chairman of Compaq, Rosen developed a reputation for having something of a heavy hand when it comes to managing the company. His swiftness to oust top executives who did not achieve results earned him the nickname "The Terminator" in some circles.
Rosen wasted no time in pushing Pfeiffer out, a move he made just nine days after Compaq announced that it would report a quarterly profit that was just half what Wall Street had expected.
 Eight years earlier, when the company also was floundering, he ousted Compaq co-founder Rod Canion, who was a close personal friend.
Prior to founding Compaq, Rosen worked as an electronics analyst at Morgan Stanley in the 1970s. After leaving Morgan Stanley in 1980, he founded a technology newsletter called "Release Lo," and an annual conference known as PC Forum, both of which he later sold to Esther Dyson.
He later turned to the venture-capital business. In addition to Compaq, Rosen was an early investor in companies such as Borland International, Cypress Semiconductor, and Lotus Developments, which developed the first PC spreadsheet application. 
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