It seems that HP is experiencing a small revolution within its walls as the company pushed its chairman Raymond J. Lane to resign from his position. But that is not the last of the changes. As it was widely anticipated, the company also informed that two other directors, John H. Hammergren and G. Kennedy Thompson, also decided to step down. HP CEO Meg Whitman is preparing the ground to put the company back on its feet after the US PC producer has been facing many financial difficulties.
Raymond Lane’s resignation
Hewlett-Packard Co. informed that its chairman Raymond Lane resigned from his position as he faced mounting criticism at the board’s meeting. The animadversion revolved around his role in the purchase of Autonomy Plc. In addition, he did not make the best of his wide experience to help struggling Hewlett-Packard Co. Certainly, his tendency towards public faux pas, just to mention that he was caught while using a computer produced by HP's rival, made it even easier for him to make enemies.
According to a statement released by the US-based computer maker, Raymond Lane will remain a member of the board. Moreover, Ralph Whitworth will take Lane's responsibilities as chairman.
The fact is that the $11 billion purchase of Autonomy Plc was the main cause of the omnipresent critique faced by Raymond Lane. The acquisition exasperated shareholders who underlined that the US-based company did not conduct accurate due diligence and Raymond Lane was one among others responsible for the shortcoming that ended with a $8.8 billion dollar writedown.
Raymond Lane highlighted in a statement: "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," adding that he was fully dedicated to the company and making it more successful.
Apart from Raymond Lane, also two board members, John H. Hammergren and G. Kennedy Thompson, kissed that one goodbye as well. Not surprisingly, they were also much lambasted for the supervision of the $11 billion acquisition of Autonomy Plc. However, even the most zealous critics of them and Raymond Lane appreciated their decisions to step down.
Revolution in HP
The temporary successor of Raymond Lane, Ralph Whitworth, underlined that the company would witness an evolution of the complement of the board. However, it seems that Hewlett-Packard Co. needs a revolution and CEO Meg Whitman is aware of that. The US-based computer producer has to find not only a chairman, but at least two directors and it is, without a doubt, a tough task. New members of the HP team should differentiate themselves from others by possessing extensive experience, wide knowledge and an outstanding set of qualities.
Analysts note that the resignation of Raymond Lane will be beneficial for HP CEO Meg Whitman as she has been intensely attempting to put the company on its feet for a long time. Even though Hewlett-Packard Co. is one of the world’s most-known tech companies, the fact is that the US computer maker has been recording financial losses for many years. HP CEO Meg Whitman is believed to have a prescription for all gripes as all her steps are aimed at making the company profitable by 2014. However, to achieve that, a revolution is inevitable!