EMC Corp.'s (NYSE: EMC) once-high flying VMware, Inc. (NYSE: VMW) finally found the wherewithal to replace its CEO, Diane Greene. The company replaced her yesterday with former Microsoft executive Paul Maritz. Microsoft is shaping up to be VMware's main competitor as computing environments in many business circles would like to jump on the virtualized bandwagon instead of dedicated hardware platforms for specific purposes.

Although VMWare was a hot IPO back in August of last year -- touching the $125 mark in October -- the stock started a downward slump right before Christmas and has been on a see-saw ever since. VMW shares are sitting less than four points from all-time lows this morning after a 25% drop Wednesday. In fact, this month has seen a 39% share price slump on the back of an overall 52% drop in 2008. Those numbers are sure to get any CEO in hot water. Although Greene reportedly constantly clashed with EMC management (EMC owns a large majority of VMware), the final axe swing surely came on the back of the share price depression currently underway. EMC management, in other words, bowed to the needs of the market in canning Greene.

Greene has been referenced as inadequate to lead a company into the world of a $2 billion annual business (its projection for 2008). I don't buy it -- she has a Master's Degree in Computer Science from UCal Berkeley along with another advanced degree. At heart, she's a brilliant computer nerd. As the head of a leading software virtualization company, her credentials and investment in VMware sound like a perfect fit. At the end of the day, though, financial performance in the eyes of a public share price is the driving force in executive retainer decisions. Greene helped co-found VMware and is heavily invested in it, but the market is not investing in her any longer. Let's hope Maritz can do a better job.