HP’s first Watergate fallout – chairperson dunn falls on sword
Saturday, September 23rd, 2006
In an attempt to stem the growing scandal at HP, the board of directors has forced Chairperson, Patricia Dunn to resign from her position and severe all ties with the company.
The Palo Alto, Calif.-based company will turn the chairmanship over to its chief executive, Mark Hurd, who was supposed to take over that job in January as part of changes announced two weeks ago.
But things have changed since then amid a wave of leaked documents revealing how deeply HP’s investigators intruded into the personal lives of seven directors, nine journalists, two employees and family members of those targeted individuals. Dunn authorized the investigation and received regular updates, although she said she didn’t realize HP’s investigators were going to such extremes.
"Now that we know the depth of what has transpired, I take full accountability to drive the actions to set it right," Hurd told reporters as he announced Dunn’s departure and reviewed what the company has learned about its spying program. He took no questions.
Hurd on Friday acknowledged authorizing the bogus e-mail, but said he didn’t recall approving the use of software to trace the reporter’s computer.
California Attorney General Bill Lockyer and several federal agencies are investigating whether HP and its executives broke any laws in their crusade.
As the days move forward we expect more revelations to unfold. With Dunn gone there is little doubt that the press will now be gunning for the next person in the chain of command – Hurd will be lucky to escape without losing his job, or coming through the process with a clean reputation.
HP may need to clear the decks further to prove that it has thoroughly purged the company of those who would serve to destroy its previously untarnished reputation.
Expect more, we certainly do.