HP's Apotheker, Board Members in Trouble Again

Lora Bentley

You'd think HP's board got its fill of headaches after former CEO Mark Hurd resigned amid controversy and new CEO Leo Apotheker found himself in the middle of a lawsuit between Oracle and SAP. But apparently not.


According to InfoWorld, Institutional Shareholder Services issued reports last week that Apotheker and three HP directors broke company rules by participating in the nomination of five new board members. Specifically, the participation of Apotheker and existing board members in the nomination process compromised the independence of the nominees.


To remedy the situation, ISS is recommending that shareholders reject Apotheker's proposed compensation package (since they now have a say on pay) and vote against the board members who improperly participated in the nominations.


Board member independence has been key to corporate risk management strategy particularly since the Enron scandal and more recently, Bernard Madoff's shenanigans.

Add Comment      Leave a comment on this blog post
Mar 16, 2011 6:11 AM sjamsudin sjamsudin  says:

HP ? Hewlett Packard ? are you sure ?

Mar 16, 2011 8:54 AM smartguy smartguy  says:

what did board member independence have to do with madoff?  ... bad reporting.


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