Dunn agrees to step down as HP chairman
Dunn agrees to step down as HP chairman
By Kevin Allison in New York
Copyright The Financial Times Limited 2006
Published: September 12 2006 15:00 | Last updated: September 12 2006 15:00
Patricia Dunn announced plans to step down as chairman of Hewlett-Packard in January, following revelations of boardroom spying that have exposed a dramatic rift at the top of one of the world’s most powerful companies.
Ms Dunn will be succeeded by Mark Hurd, who has led a resurgence at the world’s second-biggest computer maker since he took over following the ouster of Carly Fiorina as chief executive last year.
News of Mr Hurd’s appointment followed two days of emergency meetings by the HP board. It is likely to allay fears that the spying scandal could put Mr Hurd’s role as chief executive in jeopardy.
On Monday, federal prosecutors and the US Congress joined state authorities in investigating the cirucumstances surrounding an investigation into boardroom leaks.
HP has been embroiled in controversy since it revealed last week that private investigators hired on Ms Dunn’s watch had impersonated company directors and journalists as part of an investigation into boardroom leaks. The investigators used false pretenses to obtain private telephone records of people involved in the probe.
California’s attorney general last week denounced the practice as illegal.
Ms Dunn continued to defend the investigation into the leaks, which revealed details of the board’s deliberations over the future of Ms Fiorina, saying the leaks “had the potential to affect not only the stock price of HP but also that of other publicly traded companies.”
“Unfortunately, the investigation, which was conducted with third parties, included certain inappropriate techniques. These went beyond what we understood them to be, and I apologize that they were employed,” Ms Dunn said.
Mr Hurd said the techniques used by the board’s investigators “had no place at HP.”
“HP holds itself to the highest standards of business conduct and we are accountable to these standards for everything that we do,” he said. “The company will work to put these matters behind us so that we fully resume our focus on the business and continue to earn the trust and support of our customers, employees and stockholders.”
HP’s shares were little changed at $36.37.
By Kevin Allison in New York
Copyright The Financial Times Limited 2006
Published: September 12 2006 15:00 | Last updated: September 12 2006 15:00
Patricia Dunn announced plans to step down as chairman of Hewlett-Packard in January, following revelations of boardroom spying that have exposed a dramatic rift at the top of one of the world’s most powerful companies.
Ms Dunn will be succeeded by Mark Hurd, who has led a resurgence at the world’s second-biggest computer maker since he took over following the ouster of Carly Fiorina as chief executive last year.
News of Mr Hurd’s appointment followed two days of emergency meetings by the HP board. It is likely to allay fears that the spying scandal could put Mr Hurd’s role as chief executive in jeopardy.
On Monday, federal prosecutors and the US Congress joined state authorities in investigating the cirucumstances surrounding an investigation into boardroom leaks.
HP has been embroiled in controversy since it revealed last week that private investigators hired on Ms Dunn’s watch had impersonated company directors and journalists as part of an investigation into boardroom leaks. The investigators used false pretenses to obtain private telephone records of people involved in the probe.
California’s attorney general last week denounced the practice as illegal.
Ms Dunn continued to defend the investigation into the leaks, which revealed details of the board’s deliberations over the future of Ms Fiorina, saying the leaks “had the potential to affect not only the stock price of HP but also that of other publicly traded companies.”
“Unfortunately, the investigation, which was conducted with third parties, included certain inappropriate techniques. These went beyond what we understood them to be, and I apologize that they were employed,” Ms Dunn said.
Mr Hurd said the techniques used by the board’s investigators “had no place at HP.”
“HP holds itself to the highest standards of business conduct and we are accountable to these standards for everything that we do,” he said. “The company will work to put these matters behind us so that we fully resume our focus on the business and continue to earn the trust and support of our customers, employees and stockholders.”
HP’s shares were little changed at $36.37.
posted by Carlos T Mock @ 7:29 AM
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