HP's Chair Steps Down
By Colleen Taylor -- EDN, September 12, 2006
Hewlett-Packard Co. Chairwoman Patricia Dunn, who played a central role in the company's internal inquiry into boardroom leaks to the press, will give up her post in January, HP announced before the market opened today.
CEO Mark Hurd will take over the chairman role, according to HP.
The move by Dunn was the most recent event in a scandal that has shaken the computing and printing systems maker over the last week. The company is now also under investigation by the U.S. Attorney Office for Northern California and the FBI. In a statement released Monday, the federal agencies said they are specifically seeking information on "processes" used in the inquiry into the leaks.
In addition, the U.S. House Energy and Commerce Committee asked for copies of HP contracts related to the review on Monday. The committee seeks to review documents on HP's investigative plans.
Last week, California attorney general Bill Lockyer's office had also commenced an investigation into the incident, in which HP-appointed investigators allegedly used illegal tactics to obtain phone records of board members as well as journalists. HP appointed the investigators in an attempt to find out who on the company's board was responsible for leaks to the press that dated back to 2005.
The company disclosed the U.S. Attorney's investigation in a regulatory report filed with the U.S. Securities and Exchange Commission on Monday.
Dunn has faced numerous calls to resign since the investigation became public. Stepping down, she remained defensive of her initial decision to investigate the press leaks.
"The recent events that have taken place follow an important investigation that was required after the board sought to resolve persistent disclosure of confidential information from within its ranks," Dunn said in a statement.
"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," Dunn added.
The internal spying incident came to light when HP said last week in a regulatory filing that director George Keyworth acknowledged he had leaked confidential information obtained from board meetings to the media. Some of the leaks, which disclosed information about the board's internal deliberations, preceded the board's Feb. 2005 ousting of then CEO Carly Fiorina. The board asked Keyworth to resign on May 18, but he refused, according to the filing.
