Dunn's Really Done Now At HP

from the Dunn-Du-Dunn-Dunn-Done! dept

HP chairwoman Patricia Dunn has resigned from the company, effective immediately -- moving up her previously announced decision to step aside in January, and she'll also give up her seat on the board, which she'd planned to keep. Dunn looks like the fall woman here, and the evidence is mounting that she should be. She'll be replaced by HP CEO Mark Hurd, but by no means does that mean the spying scandal's over, since every new set of memos and emails the press gets a hold of seems to implicate him further. Dunn's position was untenable, and that was pretty clear from the outset, at least to most external observers. Dunn never really appeared to understand that this story was a lot bigger than she'd thought, though of course it was poor judgment on her part that kicked this whole thing off. In the meantime, Hurd continues to downplay his knowledge of and role in the spying scheme ahead of his testimony before a House panel next week. But despite Dunn being the figurehead of this scandal, it's highly unlikely that her resignation will close the book on it. Hurd's looking mighty vulnerable, too, and that's bad news for HP and its investors.


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  1.  
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    DeadlyOats, Sep 22nd, 2006 @ 2:31pm

    Change of career paths for Dunn?

    Maybe she can get a job with the Department of Homeland Security. There, she can legally spy on U.S. Citizens - and anyone else for that matter.

    I wish people would get just as upset at our government for doing the same thing, but on a national scale.

     

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  2.  
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    Anonymous Coward, Sep 22nd, 2006 @ 2:33pm

    how many millions will she get to take home with her for all her years of loyal service. :(

     

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  3.  
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    Jammed Pearl, Sep 22nd, 2006 @ 3:34pm

    Re: Change of career paths for Dunn?

    Good point.
    People need to start talking more about what's happening within their own government, and if need be, take action!!

    IT'S REVOLUTION BABY!!

     

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  4.  
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    Ted Shelton, Sep 22nd, 2006 @ 3:53pm

    why is this bad for HP's stock

    I can understand why HP's stock takes a hit from this in the short term given that uncertainties and distractions for the management team tend to defocus them on the important work of running the company. But none of the current brouhaha really impacts the companies fundamentals, so if there is a short term dip in the stock, it is probably a buying opportunity...

     

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  5.  
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    WebMan, Sep 22nd, 2006 @ 4:41pm

    Re: Re: Change of career paths for Dunn?

    All it takes is 14+ blocks of inner city folk to approach the buildings of Govt shouting change and - boink - you got yourself some mighty quick turn arounds on policies and what the government is currently doing to us..

     

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  6.  
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    Mike Mixer, Sep 22nd, 2006 @ 5:33pm

    The Patricia Dunn Show

    Well now that the dust will begin to settle you have to ask these important questions if you own HP stock, Firstly, did some of the other board members know about this business and support it? If they did they should be canned for not stopping it. If they didn't, can them because they they're too damn stupid to deserve a seat on the board or even on a thundermug. In short the whole board should be hung out to dry except for the one that was the focus of the "investigation", that may be the only person in this whole mess who isn't criminally stupid. Secondly, How fast can I get rid of this chancre-ridden stock? Thirdly, Can I sue that stupid bitch into the poorhouse for torpedoing the company the way she did? Lastly, If suing will cost too much can I track her down and make her life miserable? It will always stick in my craw that Ken Lay died before the government could send him to a free proctology school (prison for those of you in Rio Linda)

     

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  7.  
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    Gavin, Sep 22nd, 2006 @ 6:27pm

    HP, Dunn and the power of Wall St

    Each day for the last two weeks I've listened to my PR contacts bemoan Hewlett Packard's behind-the-ball handling of its growing spying scandal. HP was apparently advised to make an upfront disclosure to control this tail-spinning story on day one. Confession is catharsis and all that.

    Apparently the board believed it knew better, though, and settled for partial disclosure and confirmation as each new little fact dribbled out. It also accepted that Patricia Dunn (who initiated the investigation) would stand down from her chairman role in January 2007. Two problems there, though: her term was up in January 2007 anyway, and she was due to remain on the board. Finally, CEO Mark Hurd was ring fenced from the controversy from day one.

    Not surprisingly the media cried foul.

    With the news Dunn is now quitting immediately and Hurd's mea culpa at a specially convened press conference, it seems the board has finally started listening to the advice of its PR people.

    Why the change of heart?

    It's a comment on just how important Hurd has become to Wall St investors that the board decided to act.

    Wall St shifted from a neutral stance on HP's spying (regarding the whole affair as something of a media sideshow) to concern once Hurd was implicated. That implication brought the affair home to Wall St and HP's stock price fell as a result once it seemed Hurd could leave under a cloud and new another new CEO would be needed in less than two years - just as things were starting to look up.

    Wall St concern 1: Media outrage 0

     

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  8.  
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    Lay Person, Sep 25th, 2006 @ 8:42am

    Dunn is a scapegoat...

    Said it before, I'll say it again.

    Dunn is a scapegoat...

    Every board member knew damn well what was going on. It just seems that there are differing divisions among the board members creating alliances to save face only for themsleves.

    They needed Dunn to do the dirty work. Why else is everything timed so well with her hiring, the board, the leak, the investigation, the scandal. It's all too perfect where P Dunn is the scapegoat.

    The board neded her and they used her. I would hate to have to hold a seat on that board.

     

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  9.  
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    Peter Reid, Sep 26th, 2006 @ 6:04am

    Dunn is a scapegoat

    Why did they take so long to fire her. They should have done it sooner.

     

    reply to this | link to this | view in thread ]


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