返回信息流Dunn Out At Hewlett-Packard
Mary Crane, 09.12.06, 10:20 AM ET
Hewlett-Packard Chairwoman Patricia Dunn will lose her job as the result of the company's boardroom spying scandal, the computer maker's directors announced on Tuesday.
In what seems to be a face-saving move, Dunn's departure will be delayed until the next scheduled board meeting in January, at which time Chief Executive Officer Mark Hurd will assume her title as well. Dunn will remain on the board.
Dunn has been embroiled in a widening boardroom spying scandal over an investigation she initiated to root out the source of boardroom leaks to the press. Dunn has said she wasn't aware of how the investigation was carried out. She has been quoted as saying she would resign if asked to do so by the other directors.
Hewlett-Packard (nyse: HPQ - news - people ) said Monday it was "informally contacted" by the California attorney general's office and U.S. Justice Department requesting information concerning the company's investigation into press leaks. In a filing with the Securities and Exchange Commission, HP said it was "cooperating fully" with the inquiries.
California's attorney general has said previously that laws were broken during Hewlett-Packard's investigation, where investigators used a method called "pretexting"--using Social Security numbers and other information to impersonate board directors and journalists to obtain phone records. So far, Attorney General Bill Lockyer has not decided whether to press charges.
"These leaks had the potential to affect not only the stock price of HP but also that of other publicly traded companies," Dunn said in a statement Tuesday. "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."
So far, shares of Hewlett-Packard have edged only slightly lower since news of the scandal broke, and shares were up about 0.25% in early trading Tuesday. At around $36 a share, the stock continues to hover near six-year highs, reflecting in large part changes made by Mark Hurd, the chief executive hired in April 2005 to replace Carly Fiorina.
Hurd, who is also the company's president, cut costs and made the company's business units more nimble and accountable. Under Fiorina, the company had been criticized for getting bogged down in discussions and for unclear lines of responsibility.
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[Forbes News] Dunn Out At Hewlett-Packard
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