DEC's Olsen stuns industry by resigning

Article Abstract:

Kenneth H. Olsen, founder and president of Digital Equipment Corp (DEC), will resign from the company in Oct 1992. Olsen recommends Robert B. Palmer to succeed as president and CEO. DEC has encountered difficulties and has experienced losses and layoffs. Even so, Olsen's departure is a surprise. Olsen's career in the computer industry was nearly legendary. Olsen started DEC with $70,000 in venture capital, and he built the company into a $14 billion business. Recently, Olsen was the object of various criticisms. Under Olsen's leadership, DEC was slow to respond to challenges and opportunities presented by major industry trends. Microcomputers and open systems are examples.

Prepackaged software, Chief executive officers, New Appointment, Resignation, Olsen, Kenneth H., Palmer, Robert B.

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Digital Equipment's financial chief, who strengthened the company, to resign

Article Abstract:

DEC's chief financial officer, James M. Osterhoff, will resign. The announcement, which was not foreseen, caused the company's stock to fall $1.375 on Sep 5, 1991, to $61.125 a share. Osterhoff was seen as responsible for much of the company's financial success in the 1980s. Analysts believe that differences over policy with Kenneth Olsen, DEC's founder and president, might have provoked Osterhoff's resignation. Osterhoff favored cost-cutting and restructuring, but Olsen preferred to try to increase revenue and earnings.

Chief financial officers, Retirement, column, Executive, Stock, Osterhoff, James M.

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