HP: People still have to print
Adjust font size:
Manufacturing News, Source : The Manufacturer US
Published : 23 Oct 2006 14:18
Hewlett-Packard is much embattled, but the leak probe debacle has not dented business. In fact, HP stock is up. Shouldn't the probe matter?
On October 5, California Attorney General Bill Lockyer filed criminal complaints against former Board Chair of Hewlett-Packard Patricia Dunn, HP¡¦s Chief Ethics Officer Kevin Hunsaker, and three outsiders who helped them in the much-reported leak probe ordered by Dunn. On that very day, HP stock hit $38.08, its high so far this year, and the highest under new CEO Mark Hurd. When Hurd took over, stock was at about $20 per share.
Experts a the Cary School offered their observations in a Q&A forum. Asked if they were surprised by the minimal effect on HP stock, Dean Robert E. Mittelstaedt answered a flat ¡§no.¡¨
¡§For all the pronouncements by so-called ¡¥governance experts¡¦ what the market cares about most is performance. If the company is performing well the market will not trash the stock because of bad governance, nor will poor performance be rewarded with the presence of good governance.¡¨ Mittaelstadt went on to observe that governance affects stock price only in cases of stealing. Otherwise, ¡§Performance and future expectations about performance are what drives stock price.¡¨
The forum¡¦s conclusions:
ƒÞ Although board members should have proper authorization before talking to the media, the Hewlett-Packard leaks investigation was an overreaction.
ƒÞ When tensions arise on a board of directors, problems should be recognized and actively dealt with through proper channels.
ƒÞ CEO Mark Hurd most likely will survive the scandal because stock value has risen since he became CEO in early 2005.
ƒÞ HP's core operations and the value of its stock remain intact.
Comments on this story
click here to add a comment
You must be registered & logged in to add comments
already have an account and just want to login?
Related Content
Guest Editorial: Checklist - Seven Recommendations for Improved Profits
by Abbott A. Imberman, PhD, Professor of...
more…
FKI LOGISTEX OPENS NORTH AMERICAN TECHNOLOGY & EDUCATION CENTER (TEC)
(St. Louis, Missouri, USA: July 10, 2007) FKI...
more…
Guess selects the tradecard platformand SourceView suite to optimize global trade
NEW YORK, July 10, 2007 – TradeCard Inc., the...
more…
Kimberly-Clark Professional Crosses Final Touchless Frontier With Introduction of First Electronic Bath Tissue Dispenser
ROSWELL, Ga. (July 9, 2007) – Kimberly-Clark...
more…
Boeing Celebrates the Premiere of the 787 Dreamliner
EVERETT, Wash., July 08, 2007 -- Today, Boeing...
more…
no comments yet...