Hewlett-Packard shareholders should not vote for three new board members backed by new HP CEO Leo Apotheker, according to Institutional Shareholder Services Inc.
The advocacy group said HP CEO Leo Apotheker improperly moved to appoint these new directors, contrary to the computer giant’s own rules about board member selection.
ISS recommended a vote to unseat three current directors: Lawrence Babbio Jr., Sari Baldauf and G. Kennedy Thompson who are up for re-election. Those directors went along with Apotheker’s improper plan to select new members, according to ISS.
The Apotheker-backed new directors are Dominique Senequier of AXA Private Equity; Meg Whitman, former eBay CEO; Patricia Russo, former CEO of Alcatel-Lucent; and Gary Reiner, former CIO of General Electric. All three did business with SAP while Apotheker was an executive there.
This is the latest embarrassment for a company that has had more than its fair share of snafus over the past few years. Many HP VARs have said that they worry about continued dysfunction at the highest levels of the IT giant. This dysfunction, leading to the botched handling of Mark Hurd’s departure as CEO last August, as well as the previous “pretexting” scandal, can be a distraction, they said.
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