Hewlett-Packard Company (NYSE:HPQ) appointed new members to its board of directors on Monday. The size of the company’s board increased from 9 to 12 members.
According to Reuters, the three executives who joined the board of the PC maker include Raymond Ozzie, former chief architect of Microsoft Corporation (NASDAQ:MSFT), James Skinner and Robert Bennett, former chief executive officers of McDonald’s Corporation (NYSE:MCD), and Liberty Media Corp (NASDAQ:LMCA), respectively.
When investors are looking for a hedge fund to invest their money with, they usually look at returns. Of course, the larger the positive return, the better, but what about during major market selloffs? It may be easy to discount a hedge fund's negative return when everyone else lost a lot of money. However, hedge Read More
Objective of Hewlett-Packard
The appointment of the three new directors is part of the objective of Hewlett-Packard Company (NYSE:HPQ) in strengthening its leadership. The PC maker suffered leadership crisis for years, and it is still looking for more directors to join its board.
According to the PC maker, Bennet will become part of its audit, finance and investment committees. Ozzie will serve in the technology as well as the finance and investment committees. Skinner will join the audit, HR and compensation, and nominating and governance committees.
During his tenure at Microsoft Corporation (NASDAQ:MSFT), Bill Gates considered him as the big picture thinker for the software giant. He left the software giant to start Talko Inc. On the other hand, Skinner was highly regarded for his role in reviving McDonald’s Corporation (NYSE:MCD) during his leadership.
Brian White commenting on the appointments
Commenting on the appointments, Brian White, analyst at Topeka Capital market said, “You don’t want a bunch of technology people and you don’t want a bunch of non-technology people, you want to strike that balance. You’ve got to bring that perspective in order to enter new verticals.” He believes that the new directors will contribute new perspectives to the PC maker.
Hewlett-Packard Company (NYSE:HPQ) said it is also seeking for an executive who will serve as permanent non-executive chairman of the company. Ralph Whitworth is currently performing the role in a temporary basis.
In a statement, Hewlett-Packard Company said, “Over the coming months, the board will continue to search for additional world-class directors, as well as a permanent non-executive chairman.”
Whitworth is the founder of activist hedge fund Relational Investors. He became a member of the board of Hewlett-Packard Company (NYSE:HPQ) after his hedge fund acquired a huge stake in the company. He accepted the role of interim chairman after Ray Lane stepped down from his position due to the company’s disastrous acquisition of Autonomy. HP wrote down $8.8 billion in connection with the acquisition.
Since 2010, the leadership of Hewlett-Packard Company (NYSE:HPQ) was problematic after its former CEO left due to a sexual harassment scandal. He denied the accusations against him. In 2011, Meg Whitman replaced Leo Apothiker as CEO after the company suffered weak financial performances. Whitman is implementing strategies to turnaround the company. She is confident that HP will experience revenue growth in the future.