Michael Capellas, who sold both MCI Inc. and Compaq Computer Corp., will become chief executive officer of First Data Corp. when its $26 billion leveraged buyout is completed. But how long will he and First Data be around?

Capellas, who has made his career by cutting costs and sprucing up companies for sale, may be a perfect fit for First Data under the control of private equity firm Kohlberg Kravis Roberts & Co. Private equity firms typically acquire companies, refinance their debt, cut costs and sell them for a profit after three to five years.

First Data and KKR could not be immediately reached for comment.

“He’s never actually run a company. He just sells them. He sold Compaq to HP….He went to MCI and turned it around and sold it. He’s not an operational guy, he’s a salesman,” said one former coworker.

Capellas flips companies and pockets a lot of money on the way out. He sold Compaq to Hewlett-Packard and served as the combined company’s president for seven months. He walked away with a severance package of more than $14 million, while 17,000 employees lost their jobs in the merger. At MCI, he got a $39 million package for helping turn around the bankrupt company and selling it to Verizon Communication.

“His career is the classic case of ‘right place, right time,’” said another former coworker. “He was CIO of Compaq and the CEO there imploded and they needed someone to fill the slot. He moved into that job and then sold the company,” said the coworker, who declined to be identified by name.

Although Capellas typically cut costs at the companies he runs, his personal tastes may be well suited for the deep-pocketed world of private equity. Capellas has a preference for the Four Seasons Hotel in New York and he’s a wine snob, who doesn’t flinch at ordering $400 bottles of wine at dinner, former coworkers said.

The employees of First Data, which processes credit and debit card payments, will get a jolt of energy from Capellas. He tries to be a fun boss by tossing footballs around and playing rock music loudly on conference calls or at meetings, but former coworkers said that’s just part of his salesman shtick.

“He’s not a ‘tough’ manager — he’s just frenetic. He’s an emotional roller coaster,” said one former coworker.

First Data’s Chairman Ric Duques described Capellas more diplomatically: “Michael is by
any measure an accomplished, energetic and visionary CEO.”