Mind Your Own Business, Boys

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Capellas, who says he went to WorldCom partly because "there's appeal to being a CEO," was not offered incentives to stick around at HP. In December 2001, Compaq's board amended his severance package so that if he resigned from the merged firm within a year, he would receive a lump-sum payment--worth a previously agreed-to $14 million--within 10 days of his departure. When he left, he also received $1.6 million as part of a loan-forgiveness plan. After the merger, his employment contract was not renegotiated to entice him to stay.

Capellas started job hunting this summer, says an industry insider knowledgeable about HP's inner workings, partly because the firm's reorganization had left him with little to do. Two other executives have largely directed day-to-day operations, says this source, while Capellas spent most of his time on the road, reassuring large clients. Capellas, however, says he was approached by WorldCom executives at a birthday party in October and that "at no point did I job search." With five division heads reporting to him, he says, he was very much responsible for directing the integration of the two companies. As for his severance package, Capellas says, "Changes were made to all the management team's contracts. The basic terms weren't changed; only the timing of payments was."

HP's bulls are betting that Fiorina does not need Capellas to boost HP's profits. Capellas is a "good friend who brought many talents and a lot of enthusiasm to this endeavor," she said in a memo to employees. She also noted, "I have great confidence in our ability to continue to execute the strategies and plans we have put in place." It was vintage Fiorina, warning her cynics and doubters that they're not going to make any money by underestimating her.