4 HP directors step down

By Julianne Pepitone, staff reporter


NEW YORK (CNNMoney) -- Hewlett-Packard announced a major board of directors shuffle Thursday, with four members stepping down and five new directors joining the board.

The move comes in the wake of intense criticism and several shareholder lawsuits over how HP (HPQ, Fortune 500) dismissed former CEO Mark Hurd.

Incumbent directors Joel Hyatt, John Joyce, Robert Ryan and Lucille Salhany will step down, and five new members will take their places on Friday, bringing the total number of board members to 13.

The five incoming members of HP's board are: Shumeet Banerji, CEO of Booz & Company; Gary Reiner, formerly of General Electric (GE, Fortune 500); Patricia Russo, former CEO of Alcatel-Lucent (ALU); Dominique Senequier, CEO of AXA Private Equity; and Meg Whitman, former CEO of eBay (EBAY, Fortune 500).

In an interview with CNBC immediately following the announcement, HP chairman Ray Lane insisted the shakeup was unrelated to Hurd's exit.

The long and winding Hurd scandal: Hurd resigned abruptly in August, sending shock waves through the industry. HP executives said Hurd, who is married, failed to tell the board about a "personal relationship" with Jodie Fisher, an actress who was working as a marketing contractor for the company.

Fisher later came forward and said there had been no sexual relationship, but the HP board said that Hurd violated the company's code of ethics by filing inaccurate expense account reports in an attempt to keep the relationship secret.

When Hurd left HP, he received $12 million in cash as severance and kept a large part of his stock and options.

In early September, Oracle (ORCL, Fortune 500) announced that it had hired Hurd as co-president and a member of the board of directors.

The drama continued with HP's unexpected hiring of Leo Apotheker, the former CEO of business software firm SAP, who took Hurd's place at at the helm of HP in the beginning of October.

Apotheker is the only HP employee who sits on the company's board.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,131.97 100.83 0.59%
Nasdaq 4,552.76 33.86 0.75%
S&P 500 1,998.98 14.85 0.75%
Treasuries 2.59 -0.00 -0.08%
Data as of 5:38am ET
Company Price Change % Change
Apple Inc 100.86 -0.77 -0.76%
Bank of America Corp... 16.71 -0.03 -0.18%
Yahoo! Inc 42.71 0.16 0.38%
Alcoa Inc 16.16 -0.23 -1.40%
Facebook Inc 76.08 1.50 2.01%
Data as of Sep 16

Sections

Scotland's independence vote is too close to call but those who want to keep Britain united won this year's campaign funding race by some distance. More

Things aren't looking good for Sony -- the Japanese company expects to lose billions of dollars this year, as the global smartphone race heats up. More

Y Combinator president Sam Altman is teaching a startup class at Stanford with Silicon Valley heavy hitters as guest lecturers. Bonus: All the videos will be available for free online. More

Occupy Wall Street offshoot Strike Debt says it has abolished nearly $4 million in private student loan debt for students who attended Everest College, part of Corinthian Colleges. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.