HP Shuffles Board, Adds Meg WhitmanBy Reuters | Posted 2011-01-21 Email Print
HP is bringing in five new board members, including former eBay chief Meg Whitman. Three of the company's current directors will not stand for reelection.
(Reuters) - Hewlett-Packard Co is shaking up a board criticized by many as dysfunctional, bringing in five new directors including former eBay chief Meg Whitman, as new CEO Leo Apotheker remakes the company.
HP's board had for years come under fire from shareholders and business leaders such as Oracle's Larry Ellison, most recently after it forced out Mark Hurd as CEO in controversial fashion.
The new directors will bring fresh thinking to the world's largest technology company by revenue, including much-needed expertise in areas such as telecommunications and international experience, the company said.
In addition to Whitman, HP named as directors Shumeet Banerji, CEO of Booz & Co; Gary Reiner, former chief information officer of General Electric Co; Patricia Russo, former CEO of Alcatel-Lucent; and Dominique Senequier, CEO of AXA Private Equity.
The technology giant said directors Joel Hyatt, John Joyce, Robert Ryan and Lucille Salhany will not stand for reelection by shareholders.
"This change was two things -- the handling of the Mark Hurd situation, which was very controversial, and that with a new CEO it makes sense to have someone new," said Kaufman Bros analyst Shaw Wu.
Hurd was accused last June of sexual harassment by a female contractor, but a board investigation found no evidence to back that up. Hurd resigned August 6 after the board said he filed inaccurate expense reports to conceal a "close personal relationship" with that contractor, something Hurd's representatives have disputed.
The four directors leaving are doing so voluntarily, HP said. Hyatt and Joyce have been directors since 2007, Ryan since 2004, and Salhany since 2002. The changes leave HP with 13 board members.
According to a source familiar with the matter, Salhany and Ryan pushed hard for Hurd's ouster from the outset. Hyatt and Joyce were more supportive of Hurd at first but eventually went along with the unanimous decision to seek his resignation.