Seeking Alpha

After Mark Hurd resigned as H-P's (HPQ) CEO in 2010, Steve Jobs told Hurd and other friends he...

After Mark Hurd resigned as H-P's (HPQ) CEO in 2010, Steve Jobs told Hurd and other friends he feared H-P's board would now "send the company spiraling into chaos," according to BloombergBusinessweek. As Jobs' fears have arguably been realized, many inside H-P have accused Hurd of mortgaging H-P's future. But while some of those critiques may be valid, "they fail to capture why HP’s prospects got so much worse so quickly after Hurd left," the magazine notes The constant through it all has been chairman Ray Lane, accused at times of filling H-P's oft-criticized board with cronies.
Comments (35)
  • HP stock down 40% for the year in 2012.
    CEO Meg Whitman "earns" a salary of $15M.

     

    http://bloom.bg/XtxvYX
    12 Jan 2013, 03:30 PM Reply Like
  • deercreek
    I only wish someone would reward my failures like so so many in the corner offices are so rewarded.
    12 Jan 2013, 03:43 PM Reply Like
  • wyostocks,

     

    How could the HP Board, which represents the shareholders, give the OK on such a "reward" for Ms. Whitman?
    Under her leadership (?), HP has become a shell of what it once was.
    $15.4M for "leading" HP to a 40% decline.
    Make sense to me.

     

    Have a great weekend.
    12 Jan 2013, 03:53 PM Reply Like
  • She's the best. Look what she did to eBay.
    12 Jan 2013, 04:03 PM Reply Like
  • Britney Spears turned down $15 million for one season as a judge of XFactor. I don't know what Meg is worth but I do know that it is much harder to lead a turnaraound than it is to ride a winner.
    12 Jan 2013, 07:44 PM Reply Like
  • Britney might pull off an HP turnaround. Meg will not.
    12 Jan 2013, 07:50 PM Reply Like
  • I agree that it is harder to lead a turnaround than it is to judge a talent show.

     

    A leader is not someone who points fingers at others while the company stock loses 40%, in my opinion.

     

    The turnaround road is a long one and I don't know if HP has enough gas in the tank to complete the journey.
    12 Jan 2013, 08:07 PM Reply Like
  • That's not completely fair.

     

    That's like giving a doctor a dying cancer patient and then complaining when they are not back to robust health the following year.

     

    It will take YEARS to turn around HPQ. The worst thing they can do now is bring in a new CEO and throw them out 3-4Q later. Someone will have to be allowed to make the short term painful cuts that wall-street may not reward until down the road.
    13 Jan 2013, 12:35 AM Reply Like
  • "Under her leadership, HP has become a shell of what it once was!"

     

    Didn't that start with Carly?
    13 Jan 2013, 06:50 AM Reply Like
  • Happens all the time. If you are chums with the right people in the company, you move from fiaso to fiaso declaring victories. The people left to clean up are left holding the bag.
    13 Jan 2013, 10:51 AM Reply Like
  • So because it will take years for HP to turn around, if they turn around at all, you propose keeping Meg Whitman in place? How many years of the stock declining 40% will the Board allow?

     

    She is the CEO. As long as she holds this spot, she carries the "magic wand" to do something to stop the downward spiral of HP. She can't keep using the President Obama excuse of: I came into this job and there were big problems. It is her job to fix them, not point fingers at those who messed things up in the past.

     

    Not a Monday morning QB. Just someone who wonders why $15.4M is paid in salary after a year like HP had.

     

    HP is in a world of "what have you done for me lately?" You want to give Ms. Whitman years to turn HP around, best wishes.

     

    There are much better places to invest money. People are understanding this.
    13 Jan 2013, 11:29 AM Reply Like
  • If Meg had any confidence in her "plan" she would be on a one dollar salary with lots of stock options. Look for more "plans" to be announced in the future.

     

    As to the comparison to Obama, she is after all a politician.

     

    Agree, lots of other places to "invest", this is for gamblers.
    13 Jan 2013, 11:34 AM Reply Like
  • Well stated Wyostocks --
    13 Jan 2013, 12:12 PM Reply Like
  • lol wyo, thats exactly how her pay is structured http://nbcnews.to/Y3GXGy
    13 Jan 2013, 01:22 PM Reply Like
  • Most corrupted system I worked in my life is HP. it filed with violators of culture & ethics. They won’t respect value or principles. HP won’t promote genuine talents, won’t promote innovation. If HP filed with genuine people, by this time HP become a trillion company. “Tablets may be lunched by HP around 2007”
    13 Jan 2013, 03:45 PM Reply Like
  • surely not when you "pay" 15+ million for failure! the board should be water boarded too
    13 Jan 2013, 06:11 PM Reply Like
  • and the board also the $1 dollar a year pay
    13 Jan 2013, 06:13 PM Reply Like
  • Meg was on the board back when this die was being cast.
    12 Jan 2013, 04:00 PM Reply Like
  • Carly, Mark, Leo and now Meg. Compaq, Palm, EDS, and Autonomy. A ship of fools and their foolish moves. HP's recovery, if it indeed happens, will take a long time.
    12 Jan 2013, 05:01 PM Reply Like
  • Hurd did to HP what Welch did to GE...... Dismantled it. Took the latter a long time to repair. We will see about HP and of course they have made additional mistakes. Both got paid multi- millions.
    12 Jan 2013, 05:52 PM Reply Like
  • Ever since they brought in that witch Carly Fiorina, HP has been on a death spiral. Mark Hurd just did a brief revival by squeezing the last bit of juice.
    12 Jan 2013, 07:24 PM Reply Like
  • A. Meg Whitman doesn't have a magic wand to fix years of mistakes, especially Mark Hurd's mistakes of cutting R&D in a company who's motto was "Invent".
    B. A long term turnaround plan is now in place.
    C. Best management and Board in place since Bill Hewlitt left the company.
    D. Allan Mullaly was paid $17 million in 2009 at a time when the auto industry was on it's knees. Was he worth it? Retrospectively, absolutely yes.
    E. Ray Lane used to be COO of Oracle. He clashed with the Samurai of Software and they still hate each other, which is probably the whole reason Hurd was even hired over there. The comments that *may* have been said by the deceased Steve Jobs about HP to a terminated former HP executive who now works for a rival firm is kinda suspect, isn't it?

     

    The crap that gets printed on HP by Monday morning quarterbacks who never set foot on the field themselves is unbelievable.
    12 Jan 2013, 10:17 PM Reply Like
  • Both HP's hirings and firings have been tinged with political correctness, so they've received their just desserts for such foolishness.
    12 Jan 2013, 10:23 PM Reply Like
  • It gets printed for a reason. Carly wasted HP's cash on Compaq ignoring and dissing the advice/wisdom of those who did the original "inventing". Meg's skill on the board is not encouraging when one says "long term turnaround" now that she's in a $15M CEO's position. Palm OS anyone?
    12 Jan 2013, 10:28 PM Reply Like
  • Will its quite true. Please check out a new video on this

     

    http://bit.ly/TT3YbB
    13 Jan 2013, 06:14 AM Reply Like
  • The stock just needs to be cheap enough so that Oracle can buy it, then Hurd will be put in charge of HP again and happy times will return.
    13 Jan 2013, 09:29 AM Reply Like
  • Get a grip people. Look at HP's phenomenal revenue generation and cash flow generation. They are both massive and only slightly down the past few years, not enough to justify the share price crash. Too much oversimplification of their business.
    13 Jan 2013, 11:47 AM Reply Like
  • years of misanthropic business practices tend to lose you customers.
    13 Jan 2013, 11:56 AM Reply Like
  • An HP story:

     

    For years I used HP printers, but was always vexxed by their boated software packages that sucked up system resources and often crashed. I mean, why is a half a gig required to run a printer?

     

    Then, HP got even more clever and started to refuse to update printer drivers for new Windows releases, preferring instead to release some "new" printer model that was compatible with the new Windows, i.e., make you buy a new printer through planned obsolescence.

     

    It was such a clever marketing approach that I now use Canon printers, which are far superior in performance and reliability and don't come packaged with "bloatware," either.
    13 Jan 2013, 12:32 PM Reply Like
  • Agree.
    I have used HP printers exclusively for over 30 years. I bought my last one awhile back and when I use up the remaining ink I have will look into the Canon.
    13 Jan 2013, 01:23 PM Reply Like
  • HP used to make really good stuff, which can be a curse. I'm still using the first HP laser printer I bought. 2013 marks it's 18th birthday, and it still prints great - no need for a new one presently, nor does it show any signs of failure.
    13 Jan 2013, 02:10 PM Reply Like
  • The top end HP laptops are great high quality products, they look good too. But their price tag is far too high in this crowded market.
    14 Jan 2013, 04:27 AM Reply Like
  • HP is just one of many.. most even, large US corps that would be absolutely worthless without US deficit spending...
    13 Jan 2013, 12:42 PM Reply Like
  • At least under Hurd it felt as though the company was being managed with a modicum of common business sense.
    13 Jan 2013, 03:46 PM Reply Like
  • Might be the worst board ever.
    14 Jan 2013, 12:40 AM Reply Like
DJIA (DIA) S&P 500 (SPY)