Hewlett-Packard picks Hurd as new CEO
PALO ALTO, Calif., March 29 (UPI) -- Hewlett-Packard Co. of Palo Alto, Calif., has picked NCR Corp. Chief Executive Mark Hurd as its next chief executive, the Wall Street Journal said.
Hurd has been the CEO since early 2003 of NCR, a Dayton, Ohio company that makes cash registers, automated teller machines and other retail and financial electronic equipment. He turned the company around by cutting costs.
Hurd replaces Carly Fiorina, which HP dumped on Feb. 9, largely for not meeting profit and revenue expectations after HP's 2002 merger with Compaq Computer Corp.
In afternoon trading on the New York Stock Exchange, HP shares rose $1.24 or 6.3 percent to $21.03.
HP directors chose Hurd because he is a strong executive able to improve operations quickly and execute strategy, someone familiar with the situation told the Journal.
NYSE narrows choice for top job
NEW YORK, March 29 (UPI) -- Marshall Carter, formerly with the State Street Corp., is the top candidate to become chairman of the New York Stock Exchange, the Wall Street Journal said.
If selected, the 64-year-old Carter would succeed John Reed, who is stepping down next month. The decision by the NYSE board, expected by April 7, would put the former bank executive with extensive Washington contacts at the helm of the Big Board at a pivotal time in its 212-year history. The Journal reported.
The NYSE wants regulatory approval of a new system with more electronic trading. The not-for-profit exchange is also weighing a shift to for-profit status that some view as a precursor to going public, the Journal said.
Reed joined the exchange as interim chairman in the tumultuous days after the September 2003 ouster of former NYSE Chairman Dick Grasso, whose huge pay package sparked a public outcry.
Reed revamped the board's structure, split the jobs of chairman and chief executive and agreed to be paid only $1 for his services.
IMF: Canada's economy strongest among G7
WASHINGTON, March 29 (UPI) -- The International Monetary Fund Tuesday praised Canada for its economic performance during the past decade, saying the nation's economic outlook seems solid.
In its annual assessment of the Canadian economy, the IMF noted Canada had the "fastest growth rate and the strongest budget position" among the world's richest Group of Seven nations -- the United States, Germany, Japan, France, Britain, Italy and Canada.
"Canada's performance reflects sound institutions, structural reforms, and a strong macroeconomic policy framework," the IMF said, adding the nation's inflation targeting system was also a good way to ensure a "solid and transparent basis for monetary policy."
However, the IMF cautioned Canada's economy might take a tumble should the Canadian dollar continue to strengthen against the U.S. dollar and thereby decrease Canadian exports.
Low-income people get Medicare forms
WASHINGTON, March 29 (UPI) -- The government has begun mailing applications to qualify low-income people for the new prescription drug benefit but critics say the forms are too complex.
The Bush administration plans to send out up to 20 million forms that will determine if the applicants can get financial assistance with Medicare's new prescription drug benefit.
But advocates for such people say the form is so complex they expect fewer than 5 percent to respond, the New York Times reported Tuesday.
For those who qualify, the government will provide a 75 percent subsidy worth about $1,250 a year for the basic drug benefit, plus an average of nearly $2,300 a year in extra assistance, the report said.
One section of the new form asks people to distinguish between the face value and the cash value of life insurance. Another question asks people how much money they receive from friends and relatives to help pay for food, shelter and utilities.
A Social Security Administration spokesman said it may be too late to change the forms, but the government will tailor its publicity to address questions raised by the first group of people, the Times reported.
The new program expects 14 million people, or one-third of all beneficiaries, will qualify for the subsidies.
Financial officer turnover up in 2004
NEW YORK, March 29 (UPI) -- Financial officer turnover in Fortune 500 companies rose as much as 25 percent from 2003 to 2004, Russell Reynolds Associates of New York says.
New corporate governance standards and investor pressures are to blame for the increase, the recruiting firm's study showed.
The study looked at turnover rates for three principal financial officers of Fortune 500 companies: chief financial officer, controller and treasurer.
Overall turnover for chief financial officers rose 23 percent, with a 21 percent rise in resignations. Turnover for company controllers rose 25 percent, while resignations skyrocketed 400 percent.
Of the three financial officers studied, only one, treasurer, showed no increase in the rate of turnover in 2004.
"The increased and relentless pressures of Sarbanes-Oxley (corporate governance) compliance and the competitive drive to beat the numbers every quarter are two factors driving rising turnover among financial officers," said Lorraine Hack, a member of Russell Reynolds Associates' Financial Officers Practice.
"Being a financial officer of a publicly traded company has become more challenging and less attractive with compliance demands, so companies must keep scouting new talent."
