Michael Capellas, Compaq

[ 8 Oct 2001 ] Vision

Michael has a clear understanding of where information technology is going and a strong vision of Compaq as an innovator and an Internet leader. He combines three powerful qualifications:

Intimate knowledge of information technology and eCommerce and how they can transform businesses, institutions and society at large.

• The experience of having been a sophisticated information technology customer.
• The ability to build and motivate a global sales force.

He has defined a mission for Compaq that is centered on transforming the customer experience by leveraging the company's position as a unifying force across the Internet. Compaq is already the leading provider of clients, servers, storage and network services for the Internet. Our strategy is focused on dramatically enhancing the customer Internet experience, building the business critical Internet infrastructure and ensuring customer success through global partnerships, solutions and services.

Michael has extensive, hands-on experience in every key area involved in successfully running a global technology enterprise. Throughout the past 23 years, he has gained a solid reputation among colleagues and customers alike as an IT executive with a rare balance of strategic insight, operational expertise, technological and financial skills, and sales and marketing savvy.

He joined Compaq in August 1998 as Chief Information Officer. He was named Chief Operating Officer in June 1999 and, two months later, President and Chief Executive Officer. On September 28, 2000, the Compaq Board of Directors elected him Chairman. He succeeded legendary Compaq Chairman Ben Rosen, who retired from the Board.

• Increasing the company's emphasis on customer success and advocacy
• Realigning Compaq around global business groups
• Accelerating product and service innovation
• Developing and communicating Compaq's Internet-focused strategy
• Strengthening the management team
• Re-energizing Compaq's strategic partnerships and alliances
• Returning Compaq to profitability and growth

Michael is a seasoned general manager with particular expertise in information technology and supply chain management. He is a Certified Public Accountant (CPA) who also has significant product development experience, including software and solutions. He has run large, global sales and marketing organizations; managed quality assurance programs; and has held a broad range of line management positions at a variety of companies.

Michael held senior positions at Oracle Corp. and at SAP America, both growing out of his information technology and supply chain management consulting work at Benchmarking Partners, a leading Houston-based information management consulting firm, where he was a Managing Partner (1996). At Oracle (1997-98), he served as Senior Vice President and General Manager for the company's global energy business, where his oversight responsibilities included product development, marketing, sales, consulting, and client support. His accomplishments there included reorganizing and refocusing the unit's global sales force, resulting in a 100% increase in business unit revenue. At SAP America (1996-97), he was Director of Supply Chain Management. His accomplishments included spearheading a business-development effort that led to approval by General Motors' Delphi unit of a $1 billion SAP implementation project.

From 1981 to 1996, Michael held several senior positions at Schlumberger Ltd., including serving as the company's first corporate director for information systems. He also served as Chief Financial Officer of Oilfield Services - Asia/Pacific and of the Dowell Schlumberger joint venture, and Director of Management Information Systems at Schlumberger's Fairchild Semiconductor unit. Among many accomplishments during his fifteen years at Schlumberger were the initiation and worldwide deployment of concurrent engineering and common manufacturing processes; the global launch of SAP R/3, one of SAP's first international projects; the increased use of off-the-shelf programs rather than individually written software code; the centralization of 100 autonomous information technology departments into a a single shared service organization; and the consolidation of 36 data centers down to 6 worldwide.

Michael began his career at Republic Steel Corporation (1976-81), where he held various systems analyst and manufacturing positions.

Michael has been married for 21 years and has two children. When not spending time with his family, he loves to play golf.

Michael grew up in Warren, Ohio, although he and his family often lived abroad during his childhood. He holds a B.B.A . degree (1976) from Kent State University (Ohio).

Community

Michael and his family have lived in Houston since 1989. He is actively involved in a wide variety of community leadership roles and charitable work. He is a national trustee of the Boys and Girls Clubs of America and a board member of the Greater Houston Partnership.

Michael is also a member of several policy and advisory groups, including the Computer Systems Policy Project, the Governor's Business Council, and the Advisory Council on the Digital Economy in Texas.

Technology

Michael is a self-proclaimed "techie" and has never met a gadget he didn't like. His office system is a Compaq AP500 Professional Workstation with dual, 550 MHz Pentium III processors, 500 MB of RAM, a 9 GB SCSI II hard drive and twin, TFT 8000 flat-panel monitors. At home he has a Presario 5900Z Internet PC with high-end Klipsch speakers that are so good that he has ditched his stereo. His home is also equipped with Compaq wireless LAN technology.

On the road, Michael uses a Compaq M300 notebook running Windows 2000. He also carries a Compaq iPAQ Pocket PC, a BlackBerry™ handheld for wireless e-mail, a cell phone with wireless Internet capabilities, a high-capacity Personal Juke Box/MP3 player developed by Compaq's research labs … and any other new device that can fit in his pocket or his briefcase. He is, you might say, the ultimate client for clients.