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Hewlett Packard (HP) and Chair, CEO Mark Hurd Weather the storm
HP Overtakes Dell as World's Number One PC Maker
February 8, 2007. Hewlett Packard, and its Chair and CEO Mark Hurd, appear to have weathered their 2006 corporate governance woes fairly well. There are even signs of a resurgence.
Dell's Governance Problems
On the governance front, while HP's problems seemed to be easing, Michael Dell, founder and chair of Dell, took back the job of CEO from Kevin Rollins, a post he relinquished in 2004 - having served in that position since 1984 when he founded the company in a dorm room. Dell has been struggling to make a turn around in 2006, during which time HP making a resurgence as a leader in the personal computer field. In pursuit of high profit margins, Dell had neglected customer service, a major reason for its initial rise to the number one PC maker spot.
California Backs Away From Felony Charges
The State of California appears to be backing away from Felony charges against former Chair Patricia Dunn and Kevin T. Hunsaker, a former senior HP employee see article below. The insider trading suit against Mark Hurd also appears to be going nowhere.
HP's New Board Appointments Aimed at Improving Governance Oversight
On February 6, 2007, HP announced the appointment of Michael J. Holston, 44, as executive vice president and general counsel effective February 22, 2007. He will be responsible for the company's legal affairs, as well as compliance, government affairs, privacy and ethics. Houston will report to Mark Hurd, chair and chief executive officer, and will be part of HP's Executive Council leadership team. As a partner at Morgan Lewis, Houston had been HP's external counsel for over 10 years on a variety of litigation and regulatory matters. In 2006, HP appointed Holston to conduct an investigation of the spying scandal at HP and in September, Holston revealed the results of his investigations, naming the HP executives involved in finding the source of boardroom leaks and disclosing plans at HP to use false information to lure reporters into identifying the leak. Holston said Mark Hurd, chairman and CEO of HP, approved of the plan.
Hewlett Packard's Corporate Governance Pages On This Site
HP's Governance Woes