PayPal's CEO Change Blindsided HP's Board

An anonymous reader shares a report: PayPal said on Tuesday it was booting its CEO and replacing him with its board chair Enrique Lores, sparing no ambiguity as to why: "The pace of change and execution was not in line with the Board's expectations," it said in a statement. One group that was blindsided was HP, where Lores was until Tuesday serving as CEO, according to people familiar with the matter.

Lores' switchup sent them rushing to launch a search process, those people said. HP's board does have internal candidates which it's considering for the top job, according to a person familiar with the board's thinking. As chair of PayPal's board, Lores played a role in a process evaluating internal and external candidates. It was unclear when or if he recused himself from the final decision to name him as CEO. But HP's board was only made aware that Lores was taking the CEO role at PayPal in recent weeks, the people said.