HP chairman bows to shareholders, steps down
Ray Lane is giving up his chairmanship of the company's board. (March 3, 2011) Credit: Bloomberg
Shareholders are upset by a series of mistakes that have damaged the company's share price, including the $8.8-billion write-down on the $10-billion acquisition of business software maker Autonomy in 2011.
At the March 20 annual shareholders meeting, Lane's re-election as director received just 59 percent support, compared with 96 percent for Ralph Whitworth, a veteran shareholder activist who will run the board temporarily.
Two other board members targeted by the shareholder revolt decided to resign. They were John Hammergren, a director since 2005 who got 54 percent support, and G. Kennedy Thompson, a director since 2006 who got 55 percent.
"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," Lane, 66, said in a statement.
HP shares Thursday dipped 5 cents to $22.25 in after-hours trading after closing up 1.78 percent at $22.30. The company's stock is nearly two-thirds below its all-time peak of $69, reached in June 2000.
The company said it will now embark on a search for a permanent nonexecutive chairman as well as two more independent directors.
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