H-P executive quits amid WorldCom reports

Michael Capellas quit Monday as the No. 2 executive at Hewlett-Packard Co., just hours after a newspaper reported he is a leading candidate to take over troubled WorldCom Inc.

Capellas, above, who went to Hewlett-Packard in May as part of its $19 billion acquisition of Compaq Computer Corp., is leaving to “pursue other career opportunities,” according to an H-P statement.

The Wall Street Journal reported Monday that Capellas, who had been Compaq’s chief executive before becoming Hewlett-Packard’s president, had become the front-runner to succeed WorldCom CEO John W. Sidgmore.

Lawsuit: Block to appeal ruling

Kansas City, Mo.-based H&R Block announced plans on Monday to appeal a Texas judge’s planned order requiring the company repay $75 million for receiving undisclosed fees for loans to clients who expected tax refunds.

In a letter to attorneys, Judge J. Manuel Bangles in Kleberg County, Tex., announced his plan to order the repayment in the class-action lawsuit. The lawsuit is one of several Block faces over “refund anticipation loans.”

The judge wrote that Block should have disclosed the fees because it was supposed to look out for their clients’ financial interests.

Block, the largest tax preparer in the country, denied it owes a fiduciary duty to tax customers.

Telecommunications: Sprint reveals Esrey is battling cancer

Sprint Corp. announced Monday that Chairman and CEO William T. Esrey has been diagnosed with lymphoma, a cancer of the lymphatic system, and will begin chemotherapy to treat the disease.

Doctors at North Carolina’s Duke University Medical Center, where Esrey was diagnosed, have informed him that the lymphoma is considered highly treatable and they anticipate a full recovery, the company said.

Esrey’s doctors advised him that the normal course of treatment involves a few hours one day every three to four weeks. Esrey, 62, will continue to handle his full day-to-day responsibilities as chairman and chief executive officer of the Overland Park-based company while undergoing treatment.

Survey: Salaries up for CEOs

Salaries and other pay perks for chief executives rose last year in most industries, according to a research group’s study released Monday, even as the economy slipped and the stock market fell.

The private, New York-based Conference Board said the biggest increases in 2001 were for executives in energy and construction businesses.

According to the board’s survey, total compensation was highest for executives in the financial services sector, with median pay of $1.9 million. Lowest paid were top executives in transportation businesses, where the median was $753,000.

Pay grew by 32 percent for construction executives, where median pay was $1.5 million and by 22 percent for those in energy, who made $1.6 million.