HP’s Chairwoman to Step Down in January, 2007

Changes in HP Board after Scandal

by Yaroslav Lyssenko

[ 09/12/2006 | 11:51 PM ]

According to a report by Forbes.com, Patricia Dunn, now former non-executive chairman of Hewlett-Packard, has been removed from her position on Tuesday following a an “improper investigation methods” scandal outbreak.

<%BANNER[article_nw]%>

“Only a week after news broke that an investigation that she instigated led to the possible illegal procurement of phone records for board members and several journalists, Dunn announced Hurd will succeed her as chairman in January. She will remain a director. Meanwhile director George Keyworth, who acknowledged that he was the source of news leaks that started the scandal last year, resigned from HP’s board,” writes Forbes.com.

HP issued a brief statement with Patricia Dunn, apologizing for the methods used in the investigation and Chief Executive Mark Hurd consolidating his power.

“I am taking action to ensure that inappropriate investigative techniques will not be employed again. They have no place in HP,” said Mark Hurd.

Still, Hewlett-Packard said Monday it was “informally contacted” by the California attorney general’s office and U.S. Justice Department, requesting information concerning the company’s investigation into press leaks. In a filing with the U.S. Securities and Exchange Commission, HP said it was “cooperating fully” with the inquiries.

”These leaks had the potential to affect not only the stock price of HP but also that of other publicly traded companies. The company will work to put these matters behind us so that we fully resume our focus on the business and continue to earn the trust and support of our customers, employees and stockholders,” said Patricia Dunn in a statement.

• Forbes.com: HP after Dunn.