Sex scandal lands Hewlett-Packard in turmoil
August 18, 2010 by Steve HannafordPosted in: Dealers & Channel, In this week's e-newsletter, Latest News & Views
Hewlett-Packard’s latest woes have nothing to do with its technology prowess or market position. But a shakeup in the world’s largest printer manufacturer and PC maker certainly has caught the attention of the industry.
The resignation of HP’s CEO, Mark Hurd, had nothing to do with the profitability of the business. As the Wall Street Journal noted: “To put bluntly, Hurd approved payments for reasons having nothing to do with creating value for shareholders.”
No, it was an alleged bribery and sexual harassment scandal that tripped him up: If you want the details, check here. Or here.
But the sudden switch in leadership has some HP rivals looking for an opening, especially those in the enterprise data management business (such as IBM and Oracle).
For any company in a competitive market, suddenly losing a successful CEO has got to be a blow. In addition, the Hurd dismissal has led to a serious drop in HP stock and a shareholder lawsuit.
Getting a good leader in a fast-changing business is always a gamble, so the next moves HP’s board will be critical. None of this will affect anything in the short term, but HP’s long-term health and the balance of power in the computer and printing industries are on the line.
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Tags: Hewlett-Packard, HP, Mark Hurd, scandal
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