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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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Change of career paths for Dunn?
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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Re: Change of career paths for Dunn?
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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why is this bad for HP's stock
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Re: Re: Change of career paths for Dunn?
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The Patricia Dunn Show
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HP, Dunn and the power of Wall St
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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Dunn is a scapegoat...
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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Dunn is a scapegoat
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