14 DAY TRIAL // The disastrous acquisition of Autonomy, which most everyone feels cost HP billions of dollars more than it should have, is still sending ripples, even two years after the fact. The latest consequence is the massive roster change of the Board of Directors.
There is a whole fraud scandal going on because of the perceived cheating that happened when the accounting reports were made.
Between that and the sharp decline in PC sales, and HP's repeated failure to rebound and reshape its business, the Board of Directors has chosen to make some big changes.
Some may feel the departure of the Chairman is the biggest change, but the departure of John H. Hammergren and G. Kennedy Thompson might be an even bigger shock.
After all, Raymond J. Lane has been the chairman for only two years, and he won't be leaving the company, while John H. Hammergren and G. Kennedy Thompson are the longest-serving members.
"I'm grateful that Ray will continue to serve, and I wish John and Ken the very best," HP president and CEO, Meg Whitman, said in a statement.
Lane saw that the board began losing faith in him five months ago, when the true magnitude of the Autonomy mistake came to light.
Having barely won the reelection at the annual shareholders' meeting last month (with just 59 percent of the vote versus last year's 96%), he decided to step down on his own.
"After reflecting on the stockholder vote last month, I've decided to step down as executive chairman to reduce any distraction from HP's ongoing turnaround," said Lane.
"Since I joined HP's board a little over two years ago, I've been committed to board evolution to ensure our turnaround and future success. I'm proud of the board we've built and the progress we've made to date in restoring the company. I will continue to serve HP as a director and help finish the job."