Hewlett-Packard faces growing investor discontent
Shareholders have good reason to be unhappy with board. Now, some are campaigning for change.
According to The Wall Street Journal, Chairman Ray Lane and three other board members met Monday with 20 of the Palo Alto, Calif., company's biggest shareholders to address their concerns.
The move, a month before the board stands for re-election, is unusual. First, the odds of any effort to unseat Lane and two other members succeeding are pretty slim. But HP's recent history is anything but typical, and the shareholders have some legitimate beefs.
Shares of HP have slumped nearly 60% over the past five years, even with their recent runup, as the company seemed to be a day late and a dollar short for most important technological trends. A revolving door in the CEO's office didn't help matters either.
Activists at the union-backed CtW Investment Group have questioned the board's diligence in the $11.4 billion acquisition of the U.K. software company Autonomy last year. HP wrote down most of the deal after discovering "accounting improprieties." Autonomy founder Mike Lynch has denied wrongdoing.
CtW, which is a part of the Change to Win labor union, is campaigning against the reelection of directors Lane, John Hammergem and G. Kennedy Thompson. Its views are shared by other shareholders, which probably worries HP. Anne Sheehan, director of corporate governance for California State Teachers' Retirement System, told the Journal that HP is looking for new directors.
HP couldn't be reached for comment for this story. CEO Meg Whitman, whom some investors are crediting with beginning a turnaround at the company, probably wouldn't appreciate a huge turnover on the board. In the end, though, she may have little choice.
--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
My life is perfect and great!
If any of yours isn't, go start a Revolution. I couldn't care less!
God bless America!
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
A basic income policy can actually ensure a decent standard of living for everyone.
- People left $500,000 in coins at airports last year
- How your driving can affect your credit
- Obamacare projected to cost hundreds of billions less
- November jobs report: Winners and losers
- Student loan debt climbs for 5th year in a row
- Wall Street finally notices Bitcoin
- Part-time workers hurt by on-call system
- 5 myths about late payments and your FICO scores
- Auto loan interest rates hit record low
[BRIEFING.COM] A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
It was just one day, yet there was ample meaning wrapped up in the connection that the 10-yr ... More
More Market News
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.