More changes within HP could happen in the future
After
a widening scandal that has rocked Hewlett-Packard, Chairwoman
Patricia Dunn has announced that she will step down on January 18.
CEO Mark Hurd will replace Dunn while retaining his positions as
president and chief executive officer.
The controversy started after board
leaks caused an investigation that showed Dunn ordered the checks of
telephone records of reporters and board members. Even though she is
stepping down as chairwoman, Dunn will remain a member of the board –
which may indicate that she still has support from some board
members. The company last week disclosed details that eventually led
to a former board member to resign due to the poor way the situation was handled.
Federal
investigators and Congress began pressuring Dunn to step down
yesterday. The Federal Bureau of Investigation, House Energy &
Commerce committee and the U.S. Attorney also have joined the
investigation. The company now faces five inquiries from a number of
federal organizations.
HP also announced that George Keyworth
II resigned from the board of directors. Keyworth acknowledged that
he was the confidential source used in a CNET article that came
before a probe into media leaks by HP. The decisions came after the
board frantically met over the weekend and yesterday.
Scandal is not new for HP executives. The company recently underwent massive changes when Carly Fiorina, the company's previous CEO, was replaced by Mark Hurd. Although the scandal is a sore spot on the company's history, the drastic turnaround Hurd has brought to the company at the CEO level should become even more pronounced with his new control of the company board.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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