Ray Lane steps down from position of chairman, along with two other board members.
Industry Analysts reports that HP chairman Ray Lane has resigned after pressure from stockholders who are unimpressed with the company’s recent financial struggles.
Two other board members – John Hammergren and G. Kennedy Thompson – also stepped down after a recent shareholder rebellion aimed at the three HP employees, with Hammergren and Thompson said to be the OEM’s two longest-serving board members. As a result of the resignations, none of HP’s directors will have been on the board for more than four years
Hammergren and Thompson had reportedly been targeted by shareholders due to their roles giving them oversight over HP’s acquisition strategy, which have led to the company losing more than $17 billion (€13 billion) since 2010.
Replacing Lane as chairman on a temporary basis will be Ralph Whitworth, a shareholder activist who has been on the board for less than 18 months and whose firm owns 34.5 million HP shares. Whitworth has reportedly hinted that the board would be “overhauled” following pressure from angry shareholders at the OEM’s annual meeting in March. The meeting saw 96 percent of voters opting for Whitworth to be elected as chairman, compared to just 59 percent backing Lane’s re-election.
In less than three years, HP’s market value has halved, with $45 billion (€34.5 billion) of shareholder wealth being lost.
Commenting on the overhaul of HP’s board, Dieter Waizenegget, Executive Director of HP shareholder CtW Investment Group, said: “Shareholders stand ready to assist the board in bringing in effective, independent directors to help restore this icon of U.S. innovation.”