One of the top businesswomen in the US, Fiorina was the golden girl of Silicon Valley when she took over as chief executive of HP in 1999. She had a difficult task ahead of her – HP, while one of the founders of the tech revolution, had by 1999 lost its way a little, missing out on the early internet boom and struggling to compete in the new marketplace.
Fiorina was brought in to shake things up, and proceeded to do so, pushing through major management changes and diversifying away from HP's core printer business into computers.
In 2002 she made her most controversial move, acquiring Compaq Computer after a bitter boardroom tussle with Walter Hewlett, HP director and son of co-founder William Hewlett.
However, the acquisition never quite made good on its potential and financial results have been disappointing.
Rumours have persisted for weeks that there was division in the HP boardroom, and yesterday Fiorina was finally ousted by the board. According to Reuters, her severance package amounts to $21 million.
Robert Wayman, chief financial officer, replaces Fiorina as CEO on an interim basis. Patricia Dunn, an HP director since 1998, has been named non-executive chairman of the board.
"Carly Fiorina came to HP to revitalise and reinvigorate the company. She had a strategic vision and put in place a plan that has given HP the capabilities to compete and win. We thank Carly for her significant leadership over the past six years as we look forward to accelerating execution of the company's strategy," said Dunn, on behalf of the board.
"While I regret the board and I have differences about how to execute HP's strategy, I respect their decision," said Fiorina in a statement. "HP is a great company and I wish all the people of HP much success in the future."
Fiorina joined HP after spending almost 20 years at AT&T and Lucent Technologies, where she held several senior positions and was responsible for Lucent's IPO and its subsequent spin-off from AT&T.
Emma Grossmith, an employment law specialist with Pinsent Masons, the firm behind OUT-LAW.COM said:
"The primary legislation in the UK to protect people who have been sacked unfairly is of almost no value to senior employees in a similar situation to Ms Fiorina. Whilst Ms Fiorina's settlement package is considerable by any standards, a senior executive in this country ousted in a similar fashion could only hope to win up to a maximum compensation award of £56,800 even if they were successful in an unfair dismissal claim in an employment tribunal."
She continued:
"Since many top executives earn hundreds of thousands of pounds every year in salary and bonuses, this sum is just a drop in the ocean of their overall losses. Unless they can find a way to bring a breach of contract claim in the Courts, they may find themselves without any real remedy. Whilst those of us to whom £56,800 is still a lot of money may have little sympathy for these 'fat cats', there is no question that those at the top do pay a higher than average price if they fall out of favour."