HP Co-chairman Ray Lane quits
The Co-Chairman of Hewlett Packard, Ray Lane, has decided to part ways with the company. Lane came under heavy fire from shareholders for the Autonomy PLC fiasco last year.
Reuters reported that HP, which has gone through several board upheavals in the past decade, will appoint director and activist investor Ralph Whitworth as interim chairman until Lane’s replacement is found.
HP is also seeking two to three new board members, the company said on Thursday.
“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,” Lane said in statement. “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.”
The changes come weeks after Lane, a Kleiner Perkins managing partner who will remain an HP director, narrowly won reelection at HP’s annual shareholders’ meeting with less than 60 percent of voting shares compared with 96 percent a year ago.
Two other directors who kept their seats with narrow margins, G. Kennedy Thompson and John Hammergren, will leave the board, and the company will look for two to three new, independent replacements, said Reuters.
Lane is one of the most prominent casualties of an acquisition that has incensed investors, who have criticized the company for paying $11 billion for Autonomy and for failing to conduct proper due diligence. HP eventually took a multi-billion dollar writedown on the asset’s value.
The Autonomy deal capped a tumultuous decade for the company that included the “pretexting” scandal of 2006, which led to the resignation of then-chairwoman Patricia Dunn.
Four directors left HP in early 2011 following the ouster of former CEO Mark Hurd in 2010. In late 2011 Whitworth joined the board and director Whitman became CEO.
Whitworth, who runs activist hedge fund Relational Investors LLC, had said at HP annual shareholders’ meeting in March to prepare for an “evolution” of the board.
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