HP/EDS “frozen day” was a success throughout Europe

Press release

The second European action day jointly organized by UNI-Europa and the EMF
throughout the continent to protest against HP/EDS restructuring plan, and its
consequent salary freeze, benefit cuts and redundancies proved to be a success. The
action was named “frozen day” in reference to the announced salary freeze.

In Germany, actions were organized in virtually all locations with staff meetings
reaching 100% participation in certain places. More than 900 employees gathered in
Rüsselsheim while the Bremen steelworks account was left empty. Workers in
Ludwigsburg used their lunch break to meet with their colleagues in Böblingen to discuss
the situation.

Smaller meetings also attracted a lot of interest as the one in the Sal Oppenheim
subsidiary. In Schweinfurt, IT employees from the former SKF even gave a hand to their
colleagues to organise the demonstration. Under the motto “Yes to HP, but only if
everyone is included” the action day received very good press and TV coverage in the
country.

Unfortunately, EDS management refused negotiations for a collective bargaining
agreement on job security, safeguarding of current terms and conditions of employment
and pay increase. On the contrary, they threatened the workers’ council with the closure
of other locations. This lead ver.di and IG Metall to call for a joint strike at 14 German
sites on February 10th.

Links to videos on strike in Germany (10.02.09):
http://www.youtube.com/watch?v=C_xHJdS8uqw&NR=1 (HR) http://www.youtube.com/watch?v=7OI5IhE2O1Y&feature=channel_page (RTL) http://www.youtube.com/watch?v=Rcb3SZB55ns (Wuppertal) http://www.youtube.com/watch?v=MAOdWlvUdag&feature=related (Ludwigsburg)

This action was supported by Spanish colleagues from EDS group of Comisiones
Obreras (CCOO COMFIA) who sent a solidarity letter in which they declare that “such a
reduction of labor entails dangerous levels of stress among workers and jeopardizes the
quality of service provided to customers and thus the business of this company”.

In France, a major demonstration was organised on January 29th in different cities. It
proved to be very uniting since workers from HP, IBM and EDS walked together under a
common banner to fight the antisocial policies of their employers with all trade unions
involved. The strike got very good media coverage with a major French TV relaying the
event in Paris.

In Belgium, a protest was held on Friday morning in front HP building in Diegem
addressing a number of open issues (workforce reduction, salary freeze, EDS integration,
social plan ...). Delegations from HP CDS, EDS and other HP sites joined to form a group
of 200 people. In the afternoon a meeting which was agreed prior to action took place
between union reps and HP management and resulted in an agreement on the HP social
plan.

In the UK, tech workers asked for “no compulsory redundancies” while union members
demonstrated outside the company site in Bristol. The union Unite said the “credit
crunch is not the problem. Short termist greed is the issue”.

Two strikes were organised at HP/EDS Italy during January in cities like Milan, Rome
and Bari. Although the participation rate reached 95% in certain cases, management
didn’t react.

More than 160 employees from HP and EDS jointly attended, physically or by phone, a
one hour meeting held by HP management in Austria after an action day took place at
HP’s headquarters in the country. Both EDS and HP’s works councils decided to work
together in order to solve common issues on frozen salaries, bonuses and allowances.

When it comes to Sweden, HP corporate management announced that the firm will cut
compensations and benefits but the bonus programs are maintained. The Swedish Union
Unionen can't accept this state of fact and is asking to meet with the management in
order to discuss bonus programs, the use of external consultants and the maintenance of
employment benefits.

As for the Netherlands, the union FNV Bondgenoten is examining the reduction plans
after a satisfactory agreement was reached regarding a social plan and expressed its full
solidarity with all the above mentioned actions.



Finally, it has also to be said that workers in Hungary are suffering job losses due to the
closure of several EDS centres in the country.
___________
EMF is the representative body defending the interests of workers in the European metal
industry.
UNI-Europa is the European trade union organisation for skills and services.
For further information please contact:
Isabelle Barthès, EMF Policy Advisor on Company Policy +32(0)2 227 10 12
Gerd Rohde, UNI-Europa + 41 792 02 19 28

High Tech Misery in China, HP involved

The Dehumanization of Young Workers Producing Our Computer Keyboards

"We feel like we are serving prison sentences.”

A must read !

Hurd got pay valued at $42.5 million or $34 million in '08, depending on how you calculate...

SAN FRANCISCO (AP) --

Hurd, 52, saw the value of his compensation in fiscal 2008 jump 31 percent over the previous year, according to AP calculations. The increase reflects the prosperous period HP enjoyed before the economic meltdown hammered the stock and cut into HP's profit.

Hurd also exercised $10 million worth of stock options and had $15.7 million worth of HP stock vest during the period, according to a regulatory filing Tuesday by the Palo Alto, Calif.-based technology company.

The biggest chunk of Hurd's raise came from cash incentives based on HP's performance during the 2008 fiscal year, which ended Oct. 31 and was a banner year for the company. For the year, HP's profit rose 15 percent to $8.3 billion, while sales climbed 13 percent to $118.4 billion. Those were big gains for a company the size of HP, which has faced questions from Wall Street about its ability to continue improving sales and profit margins at a steady clip.

Hurd, who joined HP in 2005 to engineer a major turnaround after the rocky reign of former CEO Carly Fiorina, has answered by aggressively cutting costs and positioning the company as a bigger challenger to IBM Corp. through the $13.9 billion acquisition of technology services provider Electronic Data Systems.

At the end of 2005, HP had sales of $86.7 billion and profit of $2.4 billion. When the company's current round of job cuts is complete -- HP is slashing 24,600 positions, nearly 8 percent of its 320,000 workers -- Hurd will have cut nearly 40,000 jobs in two big rounds of layoffs since he took the job. Under Hurd's watch, HP has also regained its title of world's biggest personal computer manufacturer from Dell Inc., though Dell has been stealing some of that ground back with a new retail strategy.

Hurd's changes have helped HP's bottom line but they did little to soothe investors' nerves in 2008, when HP's stock price bounced around before falling off sharply in September and October as the financial crisis worsened. The stock lost more than 25 percent of its value during the fiscal year. Many analysts say HP is vulnerable to the slowdown because of its exposure to the ailing consumer market through its personal computers and lucrative printer ink, and because it relies heavily on hardware sales, which have suffered as companies freeze information-technology spending.

Still, Hurd was rewarded in 2008 for steering the company to "exceptional and sustained" financial performance in his first three full years on the job. Hurd pulled down $23.9 million in performance-based cash bonuses in 2008, according to the filing, which was almost twice as much as the $13.3 million in cash bonuses he snagged in 2007.

Hurd, 52, was also rewarded with $7.9 million worth of stock-based compensation during the period, nearly $3 million less than in 2007. Hurd's compensation package also included more than $738,000 worth of additional compensation for things like: home security ($256,000), personal use of HP's corporate jet ($135,734) and a $71,000 mortgage subsidy Hurd is guaranteed for relocation expenses under his employment agreement.
Hurd's salary of $1.45 million increased only slightly over 2007.

HP also revealed in its proxy filing with the Securities and Exchange Commission that Richard Hackborn, an instrumental figure in building HP's printer division who served 33 years with HP before retiring in 1993, has decided not to stand for re-election to the board of directors at HP's annual shareholder meeting set for March 18. Hackborn has been an HP director since 1992.
The Associated Press' calculations of total pay includes salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations exclude changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.

In comments : depending on how you calculate, Hurd saw the value of his compensation in fiscal 2008 jump 68 percent over the previous year to $42.5 million !

Enough !

Mark Hurd to employees, November 24th : "We will take aggressive action on discretionary spending…And we’ll implement a number of cost saving initiatives that are going to be tough and that some people aren’t going to like…"

And now, the list of actions on "discretionary spending" :

- There will be no salary increases, except where legally required
- EAwards are suspended
- Comprehensive benefit reviews are continuing on a country-by-country basis to harmonize HP and EDS offerings based on market practice.
- Recognition and learning & development programs are also affected
...

Huge success of the first European action day in HP and EDS on 13th November

European Metalworkers’ Federation and UNI-Europa call for
mobilisation throughout Europe

Today, HP and EDS the trade unions and the workers have demonstrated their determination to reject the management plans to downsize the workforce and cutback the terms and conditions in HP/EDS by successfully mobilising and undertaking protest action in most of the European countries where HP and EDS have locations.

In Germany, workers and works councils’ meetings have been organised during three consecutive days.
In Austria, workers’ assemblies took place in front of headquarters in Vienna.
In Belgium as well as in Sweden, information meetings for workers have been organised during working hours in the different sites. Leaflets, pamphlets, badges and campaign material have been distributed.
In Spain, workers rallied in front of the different EDS buildings for 15 minutes.
In Italy, in the wake of the protest actions organised on 21 October, a two hour strike took place in the sites of Rome and Napoli. Flyers were also distributed to the population.
In the United Kingdom, actions to raise workers and people’ awareness were undertaken outside the larger HP/EDS sites.
In France, demonstrations took place in front of the buildings in most of the HP/EDS sites. In all EDS offices outside of Paris, a day or half a day of strike was organised.
Signatures against management plans have been collected in several countries, amongst them Germany, Denmark, Switzerland and Hungary.
In Italy and United Kingdom lobbying initiatives have been undertaken towards members of Parliament.

In the light of this successful European-width mobilisation the trade unions and workers’ representatives will meet shortly to discuss and prepare future actions.
___________
The EMF is the representative body defending the interests of workers in the European metal industry. The EMF has a mandate for the external representation and coordination of the metalworkers' unions and a mandate to engage in bargaining at European level.
UNI-Europa is the European trade union organisation for skills and services.
For further information please contact:
Editor, Peter Scherrer, EMF General Secretary
Isabelle Barthès, EMF Policy Advisor on Company Policy +32(0)2 227 10 12
Gerd Rohde, UNI-Europa + 41 (0)1 792 02 19 28

Caroline Jacobsson
Information & Communications adviser
*******************************
European Metalworkers' Federation, EMF
Fédération Européenne des Métallurgistes, FEM
Europäischer Metallgewerkschaftsbund, EMB
International Trade Union House (ITUH)
Boulevard du Roi Albert II, 5 (bte 10)
B-1210 Brussels
cjacobsson@emf-fem.org
www.emf-fem.org
http://www.gmworkersblog.com/
http://www.precariouswork.eu/
Phone: +32.2.227.10.54
Fax: +32.2.217.59.63

European trade unions act against compulsory redundancies

Press Information ▪ Press Information

European trade unions act against compulsory redundancies
and the cutback of benefits at HP and EDS

Demands on European action day on 13th November

Trade union and European Works Council representatives from HP and EDS have already made it clear on several occasions that they will not accept a merger of two companies merge with the aim of downsizing (see EMF press releases of 8th September and 15th October 2008). They have called on the new management to explain how and where the new merged company would grow and how this would benefit its employees. They reject the plans to lay off 9,330 workers. These plans exceed the ‘worst scenario’ expectations held by many.

Against this background, the European trade unions have decided to call on all HP and EDS workers to mobilise on 13th November in a demonstration of European solidarity against the management’s plans.

On 13th November, EMF and UNI-Europa affiliates throughout Europe will undertake local/national actions as a sign of protest against plans for mass redundancies and cutbacks in benefits. They will call for alternative solutions aiming at safeguarding jobs and securing a sustainable future for their companies.

On this day of unity and solidarity, they will call on management to:

- provide full information and proper consultation with the trade union/employee representative bodies both at European and national levels;
- recognise the employees’ right to bargain collectively and to negotiate social plans;
- stop any compulsory redundancies;
- provide a detailed plan for redeployment and re-skilling for those whose jobs are at risk and prepare for anticipated skills shortages;
- create the conditions for the establishment of a new EWC to be built on the best elements and practices of the existing EWCs.
___________
The EMF is the representative body defending the interests of workers in the European metal industry. The EMF has a mandate for the external representation and coordination of the metalworkers' unions and a mandate to engage in bargaining at European level.
UNI-Europa is the European trade union organisation for skills and services.

For further information please contact:
Editor, Peter Scherrer, EMF General Secretary
Isabelle Barthès, EMF Policy Advisor on Company Policy +32(0)2 227 10 12
Gerd Rohde, UNI-Europa + 41 (0)1 792 02 19 28

Letter to Mark Hurd

Mr. Mark HURD
President Hewlett Packard
3000Hannover Street
Palo Alto
CA93304 – 1185
USA

Brussels, 20th October 2008

Dear M. Hurd,

Re: HP/EDS workforce reductions in Europe

We are writing to you, as European trade union federations representing the HP/EDS workforce across Europe, and following meetings on 8 September and 15 October attended by both union and European Works Council representatives from 10 countries.

Our position is as follows:

- HP/EDS management should ensure that it meets its obligations to provide full information and proper consultation with the trade union/employee representative bodies both at European and national levels. It has failed to do this so far at European level.
- HP/EDS management should recognise the employees’ right to bargain collectively and enter into negotiations on the social consequences of their planned decision.
- HP/EDS management should not proceed with any compulsory redundancies/layoffs.
- HP/EDS management should provide a detailed plan for redeployment and re-skilling of the existing workforce in order to fill current and anticipated skills shortages as an alternative to redundancies in this reorganisation.
- HP/EDS management should create the conditions for the establishment of a new EWC which will capitalize on the best practices of each EWC agreement.

The trade unions will not accept that HP and EDS merge in order to downsize. They want the new combined company to say where and how it will grow and how this will benefit its employees.

Accordingly we would appreciate your commitment to provide the following:
- Full financial information on the savings HP/EDS wishes to make across Europe
- Full employment information for the next 3 years, including the total employee number for each year across Europe and broken down per individual countries

A detailed presentation on the future goals and development plans across Europe

The European Commission is currently reviewing the European works council Directive. We believe that the lack of full and meaningful information and consultation by HP/EDS with the trade union/employee representative bodies at European level is a glaring example of why there is a need for the EWC Directive to be strengthened.

We do hope that you will arrange for the information set out in paragraphs (a) to (c) above to be made available, by 7 November where possible.

You should understand that we are currently considering HP as a potential case to be raised with the European Commission and the European Parliament, as an example of why the European Directive needs strengthening. This is a will inevitably expose HP to unwelcome publicity.

We trust that such actions will not be necessary and look forward to your early response.

Yours sincerely,

Peter Scherrer Bernadette Ségol
EMF General Secretary UNI-Europa Regional Secretary

International Trade Union House (ITUH)Boulevard du Roi Albert II, 5 (bte 10)B-1210 Brussels
Tel: +32/(0)2/227 10 10
Fax: +32/(0)2/217 59 63
http://www.emf-fem.org/ ▪ emf@emf-fem.org
UNI-Europa
31, rue de l’Hôpital
b-1000 Brussels
Tel : +32 2 234 56 56
Fax : +32 2 235 08 70
http://www.uni-europa.org/

More information in the comments about EDS +HP employees from Germany and Italy in action again (picture above from Germany). Massive European Action Day : Novembrer 13th

Italian EDS unions already hold industrial actions (sept 22nd)

COMUNICATO STAMPA

Eds Italia. Calitri (Fiom): “Primo risultato dell’azione sindacale: un incontro con l’Azienda fissato per il 6 ottobre”. Oggi sciopero oltre il 90% e manifestazione nazionale a Roma

“Il grande successo dello sciopero odierno dimostra quanto sia profonda la preoccupazione diffusa tra i lavoratori di Eds Italia per il proprio futuro, e quanto sia stata forte la motivazione che li ha portati ad aderire all’iniziativa di lotta assunta oggi dai sindacati dei metalmeccanici Fim, Fiom, Uilm.” Lo ha detto Canio Calitri, coordinatore nazionale Fiom-Cgil del gruppo Eds Italia.

“Secondo i dati in nostro possesso – ha spiegato Calitri – le adesioni allo sciopero di 8 ore proclamato per oggi hanno superato il 90%. Un risultato già alto di per sé e altissimo se si considera che questa cifra è stata raggiunta in un’impresa collocata in un settore come quello della Information and communication technology, in cui il sindacato non ha mai avuto uno dei suoi punti di forza.”

“Del resto - ha proseguito Calitri - la convinzione dei lavoratori nell’aderire all’iniziativa sindacale è stata ben visibile nella manifestazione che si è svolta oggi a Roma. Al corteo, che da piazza della Repubblica ha raggiunto piazza Barberini, hanno partecipato infatti oltre 1.000 lavoratori, ovvero circa il 50% dei metalmeccanici dipendenti dalla multinazionale Usa nel nostro Paese.”
“L’iniziativa di lotta – ha ricordato Calitri – è stata assunta per difendere l’occupazione dai tagli che sono stati annunciati da Hewlett Packard dopo l’acquisizione di Eds, e per protestare contro la disdetta degli accordi aziendali comunicata il mese scorso dal management di Eds Italia. Lo sciopero e la manifestazione odierni hanno già ottenuto un primo risultato. Una delegazione degli scioperanti è stata ricevuta al ministero dello Sviluppo Economico che ha fissato, per il 6 ottobre, un incontro con l’Azienda sulle sue prospettive produttive e occupazionali.”

Eds Italia conta circa 3.000 addetti, di cui 2.000 con il Contratto dei metalmeccanici. I siti produttivi dell’Azienda sono collocati a Roma, Pomezia, Pozzuoli, Bari, Torino, Milano e Siena. A fine agosto, Hp ha acquisito Eds formando una multinazionale del settore Ict forte di oltre 300mila addetti. L’Azienda ha però annunciato tagli occupazionali che, a livello globale, potrebbero raggiungere le 25mila unità.

Fiom-Cgil/Ufficio Stampa
Roma, 22 settembre 2008

9.300 job cuts announced at European WorkCouncil (HP + EDS)

HP said on Thursday that its Europe, Middle East and Africa division would account for up to 9,300 job cuts over two years out of 24,600 previously announced cuts following its purchase and integration of EDS. Country numbers should be known on Oct, 6th. EWC urge Management to think redeployment instead pure workforce reduction.

HP surprises Wall Street with size of EDS job cuts

SAN FRANCISCO (AP) Extracts :

When Hewlett-Packard Co. announced five months ago it was acquiring technology-services firm Electronic Data Systems Corp., Wall Street expected big layoffs from the combined company.

But the size of the job cuts -- 24,600 jobs over the next three years, nearly 8 percent of HP's 320,000-employee work force -- came as a shock when HP laid out its plans Monday for integrating EDS.

"Today's story is kind of an eyebrow-raiser -- I was surprised at the magnitude of the cuts," said analyst Bob Djurdjevic with Annex Research.

The cuts represent HP's most aggressive cost-cutting move yet under Hurd, who engineered the $13.9 billion acquisition to challenge IBM Corp. for more of the lucrative, long-term business of helping companies manage their computing infrastructure.

Most of the cuts will come from within EDS's ranks, and nearly half will be jobs in the U.S., HP announced Monday after the stock market closed. HP said it plans to eventually add about half the positions back as different jobs in different departments within the company.

Some of the areas expected to get hit include the finance, human resources and legal departments, areas where there are traditionally overlapping duties within combined companies.

HP had not previously detailed how many employees of the combined company would lose their jobs. Before the acquisition, HP had 178,000 people and EDS had 142,000.

HP expects to save $1.8 billion per year from the cuts once the restructuring is complete. The company will incur a $1.7 billion charge in the current three-month period, its fiscal fourth quarter, for a goodwill adjustment and other costs connected to the restructuring.

At a conference with financial analysts Monday, HP Chief Financial Officer Cathie Lesjak said the EDS deal is expected to add to HP's net profit in the 2010 fiscal year.

As huge as the reductions are, they're not the biggest in tech history.

One of the biggest challenges facing Hurd has been finding new ways to improve sales at a company that last year cracked $100 billion in revenue for the first time while keeping Wall Street happy with improving profit margins.

Hurd has been aggressive about cutting costs since he was hired in 2005. His first big act was a major restructuring that eliminated nearly 15,000 jobs.

European trade unions demand full information and consultation from HP in EDS takeover

Press release :
More than forty trade union representatives from Austria, Belgium, Germany, Spain, France, Sweden, UK, Italy and the Netherlands, met on 8 September to discuss the Hewlett-ackard (HP) takeover of Electronic Data Systems Corporation (EDS) at a meeting organised jointly the European Metalworkers’ Federation (EMF) and UNION NETWORK INTERNATIONAL (UNI).

Participants expressed concerns about the possible effects on employment and working conditions of the take over of EDS by HP. They also voiced discontent about the lack of information provided by both EDS and HP managements so far.

The meeting :
1) Called on HP management to ensure full and meaningful information and consultation with the trade union/employee representative bodies both at European and national levels prior to decision-making;
2) Expressed their opposition to any compulsory redundancies/layoffs;
3) Urged HP management to provide a detailed plan for redeployment and re-skilling of the existing workforce to fill current or anticipated skills shortages as an alternative to redundancies in the event of reorganisation.

UNI and the EMF will closely monitor the impact on the workforce of any proposals expected to be announced by HP management on 15 September and with affiliated trade unions take all possible steps to safeguard the interest of the workers.
___________
The EMF is the representative body defending the interests of workers in the European metal industry. The EMF has a mandate for the external representation and coordination of the metalworkers' unions and a mandate to engage in bargaining at European level.

For further information please contact:Editor, Peter Scherrer, EMF General SecretaryIsabelle Barthès, EMF Advisor on Company Policy + 32 2 2271057UNI Head Office, Avenue Reverdil 8-10, CH- 1260 NYON, Tel: + 41 22 365 2100
________

HP laying off in Corvallis

Portland Business Journal :

Eugene television station KVAL reports that employees at HP’s Corvallis plant began receiving layoff notices Monday. In a statement, the company said its imaging and printing group announced in June its plans to “realign and streamline” by reducing its business units from five to three. Some parts of the imaging and printing group “will experience reductions while investments will be made in high growth segments of the business,” the company said.

HP is reported to employ about 2,500 people in Corvallis, and 1,000 in Vancouver, Wash. The company declined to confirm these numbers. These two locations, along with a site in Boise, Idaho, are part of HP’s imaging and printing group.

Recent reports in The Oregonian and The Columbian have said HP plans to lay off as many as 300 people in Corvallis, and that some engineers and marketing employees in Vancouver could be told to find work with other HP divisions. HP is also reported to have put its 174-acre Vancouver campus up for sale, with plans to lease it back. HP declined to comment the matter.

EDS and HP Unions : already working together in France

May 20th : hundreds of EDS France employees on strike to fight back WFR and site closures, HP France Unions were there. Same day : IBM France also on strike, for salaries.

HP-EDS merger could lead to services job cuts

"We're looking to streamline our overhead," Shane Robison, HP's chief strategy officer says.

Research and consulting firm Technology Business Research Inc. is predicting fairly substantial cuts. The firm noted that H-P's services division and EDS will have a combined headcount of about 209,000 workers. "The addition of EDS will be a drag on [H-P's service] margins, and CEO Hurd will be aggressively targeting efficiencies," the research firm said in a note. "TBR expects that initial headcount reductions will be at least 10% to 15% of the combined headcount."That would mean 20,000 job cuts or more, although the consulting firm didn't speculate on how those cuts would be divided between EDS and H-P employees.

HP to buy EDS for $13 billion-plus; biggest HP deal since Compaq purchase

Three obstacles that HP and EDS will need to overcome in order for the deal to succeed :

1/Go global : U.S information-technology services companies are in a period of upheaval right now due to the emergence of companies in countries like India that can do a lot of the same work at a cheaper price. IBM and Accenture have both adapted to the new global marketplace, adding staff around the world. EDS and H-P have been slower to globalize. In order for the combined company to substantially improve its margins and win customers looking to cut costs, it will need to shift more work overseas.

2/ Vendor independence : one of EDS's hallmarks was that it didn't have a vested interest in selling its customers software and hardware from any one tech vendor. That independence is now gone: Even if H-P services tries to position itself as vendor agnostic, customers will still be suspicious every time they receive a recommendation for H-P equipment. One mitigating factor: The PCs and other tech equipment H-P sells is fast becoming a commodity. H-P CEO Mark Hurd could be betting that in a few years businesses won't care what company they buy this equipment from because it will all be the same.

3/ Culture clash : forget about how well EDS's suit-wearing consultants will fit in California. The bigger culture clash is between a product-centered company, H-P, and one focused on operations, EDS. Of course, the combined company will be so large and operate in so many different places that it's hard to imagine these legacies mattering as much as, say, how the new company adapts to the various cultures around the world it is sure to expand into.

Source : Peter Allen, a partner at the outsourcing-advisory firm TPI.

HP and journalists settle spy claims

CNET

HP settled claims on Wednesday with four reporters at the heart of a scandal involving claims that the world's biggest PC maker engaged in corporate espionage to plug a boardroom leak. HP and Terry Gross, the attorney representing the journalists, said the company would donate money to several charities chosen by the journalists as part of the terms of the settlement. They did not say how much.

"The matter has been resolved to the mutual satisfaction of the parties, and we are pleased to put this matter behind us," said Hewlett-Packard spokesman Emma McCulloch. She said the company was pleased the money would go to charities.

The scandal, which came to light in late 2006, focused on allegations that Hewlett-Packard hired investigators who impersonated reporters, board members, and employees to obtain private phone records to find the source of leaks to the media in 2005 and 2006. The two sides have been holding settlement discussions since December 2006, Gross said. "It was hard fought to get to a resolution," Gross told Reuters. "I would have expected that they would have taken a tone a long time ago that was basically 'We did wrong. We should make up for it,'" he said. A separate lawsuit filed against HP by three CNET News.com reporters is still pending in a San Francisco court. Those reporters were not part of this settlement.

Hurd Rebuilds HP by Debating `Every Single Dime'

Bloomberg, extr. :
Mark Hurd : "What we want to do is develop a culture that says, `Iwant to debate every single dime,'' . His cuts include spending on jobs, data centers, realestate and even file cabinets... Hurd's next challenge may be weathering a U.S. slowdown. Hurd plans to keep focusing on costs. Last year, the company generated $12 million an hour in sales while spending$11 million on operations. He wants to widen that gap.``I've had a chance to work around high-profile maniacs like Tom Siebel and seasoned guys like Lou Gerstner,'' formerleaders of Siebel Systems Inc. and IBM respectively, said TomHogan, hired by Hurd in February 2006 to run the software unit.``Mark is the most operational CEO I've ever seen". Hurd learned operations at Dayton, Ohio-based NCR Corp.,which he joined in 1980 as a field salesman.
...
`The more you leave the kids in the room to figure it out on their own, the more trouble you're going to get,'' Hurd said. He punctuates almost every sentence with numbers -- marketstatistics, growth rates -- and draws on a flip chart. When he joined HP, expenses were rising as fast as revenue, he said. Within three months, Hurd announced plans to slash 10 percent of the workforce, or 15,000 jobs, to save $1.6 billion a year. He pared retirement benefits to save$300 million. In 2006, he announced plans to replace 85 aging datacenters with six state-of-the-art facilities. That will cut such costs to 2 percent of revenue by early 2009 from 4 percent in 2005. All these moves helped profit more than double to $7.26billion last year from 2004.``If Carly was operating at the 35,000-foot level, MarkHurd is operating from 500 feet,'' said James Post, a professor of management at Boston University.

Hurd has admitted making mistakes. After a spying scandalin 2006 led to the resignation of HP's chairman, two directors and the general counsel, Hurd took responsibility for a probe into boardroom leaks that grew into a plot to spy on directors and reporters. He acknowledged his failure to supervise the investigators and won the backing of investors and analysts after he pledged to repair the company's image.
...

More cuts are planned, including combining call centers in the U.S., Hurd said. HP also aims to pare realestate outlays a third in two years by ``taking advantage of the fact that people are mobile and they don't come into the office every day,'' Chief Financial Officer Cathie Lesjak said. ``We don't have a lot of file cabinets that are necessary.' 'That doesn't mean HP isn't investing in thebusiness, Hurd said. It spent about $7 billion last year on acquisitions, mostly software companies, and made $3 billion in capital expenditures.``You get the strategy right, get the operating model right, get the people right, I mean generally, good things happen to you,'' he said.

HP CEO gets $26M in 2007 pay

HP CEO Mark Hurd received compensation the company valued at $26 million for the 2007 fiscal year. Hurd, 51, took home $1.4 million in base salary, another $1.4 million in bonus money and nearly $12 million in cash incentive payouts.

Hurd also received shares of restricted stock valued at $6.8 million and stock options worth nearly $4 million during fiscal 2007, which encompasses the 12-month period that ended Oct. 31. Also included in Hurd's pay package was $515,000 in additional compensation, including more than $138,000 in restricted stock dividends, nearly $126,000 in expenses for home security services and a mortgage subsidy of about $111,000.

In addition, Hurd made $4.8 million on stock options he exercised, and he had $7.4 million worth of HP stock vested during the latest period. The company has cut costs by consolidating data centers and corporate offices and aggressively slashing its headcount, including the elimination of nearly 15,000 jobs in a massive restructuring launched shortly after Hurd's arrival as CEO and completed in October.

Some 3,000 workers also left the company as part of an early retirement program that HP initiated last year. Investors have been pleased with the changes. Since Hurd took the reins of HP in April 2005, the company's stock price has more than doubled, from around $20 to more than $40 today, a rise that has created more than $50 billion in additional shareholder wealth.

The Associated Press' calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. They may vary from totals that companies report.
HP calculated that Hurd's pay package was worth $25.3 million.

" Is the work of colleagues at HPS poorer ? "

Variable Performance Bonus heavily criticized by German Works Council (first comment)

Businessperson of the Year !

Business Week names Mark Hurd Business Person of the year !

An Open Letter to the Director of HP Corporate Human Resources

An Open Letter to the Director of Corporate Human Resources, Marcela Perez de Alonso, by the Five French Unions :

Marcela,

Our approach may appear unusual, however if the five Unions present within HP France have agreed to address you directly, it is to invoke a disturbing situation which has generated a lot of emotion amongst HP’s French employees, and which unfortunately has not proved to be solvable through usual consultation and negotiation processes.

The radical changes to the Range Setting which sets employee’s paygrade according to Job Function have lead to the following situation in France:

· Mainstream Population: 73.2% of employees suffer a decrease of 1 to 2 paygrades, whilst only 2.7% increase by one paygrade

· Sales Population: 40.7% of employees suffer a decrease of 1 to 2 paygrades whilst only 3.8% increase by one paygrade

This announcement was received as a shock by French employees, and has been difficult to accept for three reasons:

1 - Loss of confidence in the rating mechanism :

Most people accord importance to the Job and Wage architecture as a way to position their value to HP and career progression. Proceeding with such massive paygrade degradations have provoked feelings of personal devaluation, and has directly lead to the mistrust of the job and rating mechanism. It has disappointed HP employees who saw their efforts rewarded in the wage and earnings system. Consequently these massive degradations are undermining employees’ motivation and morale.

2 - France unfairly affected :

Whilst EMEA as a whole is impacted by a drop in paygrades for an average 20% of the workforce, France is affected to the tune of about 60%. What might appear elsewhere as an adjustment to the system, because of the massive scale of degradations in France it is seen by many as a sanction of French employees.

3 - Lack of transparency :

Prior to this new range setting, French HR had always justified the positioning of pay grades in France as being market-compliant. The explanations for the new mechanism of range setting are presented as: "Market research, revision of the “competitive index”, new policies "on the pay grade ranges”. But neither Union Representatives nor their appointed Experts have received communication of the new market research or how they apply to jobs within HP France. This makes the exercise completely opaque, and it is impossible for us to understand or verify. The underlying logic of a very important change to pay market analysis from one fiscal year to another remains totally incomprehensible, and through lack of justification it cannot be serenely embraced by employees.

Faced with this situation, and on several occasions, the French Unions have invoked the frustration and incomprehension expressed by employees, both to HR France (Pierre-Yves Tilly) and to the France Country Manager (Yves de Talhouët). Pressed by employee meetings at all French sites and petitioned by over 1800 signatures, the unions have asked for:

· A moratorium on the application of the new range settings
· The provision of information needed to gain a detailed understanding of the motivations behind the changes in order to be able to discuss in a concerted manner their adaptation to the HP France population.

HR France appears to have understood our arguments and our discontent, and apparently requested to HR Corporate a moratorium on the implementation. However their response is that this has been refused. However, HP France employees have difficulty assimilating these changes, and do not wish to internalise their loss of confidence and hopes, and their frustration. Since no further progress on this issue seems possible in France, we hereby are informing you of the situation in France and ask you formally for a response to our requests:

· A moratorium on the implementation of the measure
· Access to the detailed information which underlay the changes to the range setting system so that we can openly negotiate their application in France.

Finally, we would also ask you to respond to this open letter by explaining directly to french employees the foundation and the benefits of these changes as well as any clarifications that you consider appropriate to address the unhappiness that the measures have provoked.


Best regards,

The Five French Unions.

Employee talks : "Industry benchmark excuses"

"HR, speaking for management, sends out notes each time cuts in benefits, elimination of retirement plans, job re-classifications and even office cube-size reductions are announced. The notes justify the reductions by basically saying, "After careful analysis of what is going on in the market, it was found that HP was being too generous to its employees and is lowering the benefits to be more in line with market conditions."

Interestingly, while externally we are trying to set the industry agenda, internally it oftentimes feels like we are on a race to the bottom of the pack, using industry benchmarks as excuses.

I know it is self-serving to complain about what I have lost and I know that cutting costs in our business is a fact of life for the rest of our lives. Yet, I wonder how much more can be squeezed out of us before the career becomes just a job — and the job is done just according to spec. If my pay and benefits are set by the industry benchmark, should the quantity and quality of the time I spend on the job also be industry-average ? "

HP to Buy Back $8 Billion of Stock

Supreme Court rejects Hewlett-Packard's efforts to block class action suit

AP

The Supreme Court on Tuesday allowed a class action lawsuit to proceed against Hewlett-Packard Co. that alleges Compaq, now a part of HP, sold defective computers.

The Supreme Court's action lets stand a 2005 ruling by an Oklahoma state court. The case involves a lawsuit by two Oklahoma residents, Stephen and Beverly Grider, who allege that Compaq Computer Corp. sold them a defective computer and didn't repair or replace it, as called for in the company's warranty.

The Griders sued in June 2003 and their lawyers asked the state court to certify a class of 1.7 million people who had bought similar computers. Their request was granted in 2005.
Compaq was purchased by Hewlett-Packard in 2002.

Class action suits allow numerous plaintiffs with similar claims to proceed in a single trial. Businesses usually oppose such designations given the greater damage awards that can result.
Compaq argued in court papers filed with the Supreme Court that a virtually identical lawsuit was brought in Texas in 2000. In that case, the Texas Supreme Court refused to certify a class action, ruling that Texas law shouldn't apply to out-of-state members of the class.

Nevertheless, Oklahoma's highest court not only certified the class, but said that Texas law should be applied in the case because, among other things, Compaq was headquartered in Texas.

Compaq's lawyers said that under the full faith and credit clause of the Constitution, which requires states to honor each others' laws and court rulings, Oklahoma shouldn't be able to apply Texas law when Texas' highest court has reached the opposite conclusion.

HP scandal: where are they now?

San Jose Mercury News

The HP spying scandal ruined careers, decimated family businesses and sullied previously sterling reputations. Here is a brief update on the key players:

* Tom Perkins, partner emeritus, Kleiner Perkins Caufield & Byers, former HP board member. Perkins blew the whistle on HP's investigation after learning his phone records were obtained by investigators. At press time, he was in Europe on his massive yacht, the Maltese Falcon, with a crew from "60 Minutes." His autobiography, "Valley Boy," is due from Penguin Nov. 5.

* Patricia Dunn, former chair. Hewlett-Packard Dunn initiated two internal investigations into boardroom leaks while chair of HP. She resigned from the board in September 2006. The California attorney general dropped felony charges against her in March. Dunn is spending time with her family, trying to stay healthy and fight cancer. She has also given talks on the lecture circuit.

* George "Jay" Keyworth, former HP board member. Keyworth resigned from HP's board in September 2006, acknowledging that he was the source of an article on CNET about a management retreat to discuss strategy. He is chairman of the Progress & Freedom Foundation, a Washington think tank, and on the board of General Atomics.

* Larry Sonsini, chair, Wilson Sonsini Goodrich & Rosati. As HP's outside counsel, Sonsini interviewed board members about leaks to the press in 2005 for then-CEO Carly Fiorina, and in 2006 his firm was asked by HP to investigate its use of pretexting during the subsequent boardroom leak probes. At the end of last year, he was replaced as HP's outside counsel, though his company still does legal work for HP.

* Ann Baskins, former general counsel HP. After a 24-year-career with HP, Baskins resigned as the company's head attorney on the morning of a congressional hearing in Washington, D.C. Married to a Wilson Sonsini lawyer, Tom DeFilipps, Baskins is not currently practicing as an attorney.

* Kevin Hunsaker, former ethics chief HP. Hunsaker, a lawyer, was the person who ended up running the investigation to uncover the boardroom leak. In June, Santa Clara County Superior Court Judge Ray E. Cunningham dismissed pretexting charges against Hunsaker after he completed 96 hours of community service during which he worked for the Fair Housing Law Project, a community legal aid service.

* Ron DeLia, Security Outsourcing Solutions of Boston; Matthew DePante, Action Research Group of Melbourne, Fla.; Bryan Wagner, a data broker in Littleton, Colorado. Charges against outside investigators Delia and DePante were dismissed after they performed community service. Wagner pleaded guilty to two felonies; sentencing is set for Oct. 3. DeLia's company is still operating, but the scandal has had a "devastating" personal and financial impact, said his lawyer, John Williams. The DePantes were both "financially and emotionally devastated," said attorney Susy Ribero-Ayala. "They shut down their business. It took a toll on their family."

50.47 $ !!!

Reporters, Family Sue HP in Spy Scheme

FT, AP : "HP's boardroom-spying scandal was back in the spotlight on Wednesday after a group of reporters and their families sued the computer maker over its controversial internal investigation into the identity of a boardroom mole.

Five separate lawsuits claiming "illegal and reprehensible conduct" were filed in San Francisco Superior Court against Palo Alto-based Hewlett-Packard, former Chairwoman Patricia Dunn and Kevin Hunsaker, the company's former ethics chief.

The lawsuits allege invasion of privacy, intentional infliction of emotional distress, and engaging in unfair business practices. They seek unspecified damages and a jury trial. "We're filing the lawsuits to make sure this never happens again," said Kevin Boyle, one of the attorneys for the plaintiffs.

HP said it apologized to each of the people affected by the spying probe and made a "substantial" settlement offer. "Unfortunately, rather than respond to the offer, they have decided to sue," HP said in a statement. "HP is disappointed by their decision and will defend itself."

The lawsuits come nearly a year after HP disclosed in a Sept. 2006 regulatory filing that investigators used a tactic called "pretexting" -- or pretending to be someone else to obtain private information from companies -- to spy on board members, journalists and their families.
The next month, California's attorney general charged Dunn, Hunsaker and three private investigators with four felony counts each -- including fraud, identity theft and conspiracy.

Those charges were later dropped, with a Santa Clara County judge calling their conduct a "betrayal of trust and honor" that nonetheless did not rise to the level of criminal activity.
Separately, HP agreed to pay $14.5 million in a civil settlement with the state, most of which was slated to fund investigations into privacy rights and intellectual property violations.

The U.S. attorney's office in San Francisco brought charges against one of the investigators, Bryan Wagner, who pleaded guilty to two felony counts of identity theft and conspiracy in the case. His sentencing is set for October in San Jose federal court.

Judge Drops Remaining Charges in HP Case

SAN FRANCISCO (AP) -

A Santa Clara County judge dismissed the remaining charges against three defendants in the Hewlett-Packard Co. boardroom spying case Thursday, calling their conduct a "betrayal of trust and honor" that nonetheless did not rise to the level of criminal activity.

Superior Court Judge Ray E. Cunningham followed through on a deal reached in March to drop reduced fraud charges if the defendants -- former HP ethics chief Kevin Hunsaker and private investigators Ronald DeLia and Matthew DePante -- each completed 96 hours of community service. The move ended the state's role in a case that ensnared some of the top officials at the venerable HP, now the world's largest technology company by revenue. A federal investigation is continuing.

Hunsaker and the two private investigators, who had pleaded no contest to misdemeanor charges of fraudulent wire communications, were accused of illegally obtaining the phone logs of directors, journalists and HP employees in an effort to identify board members leaking confidential information to the media. In tossing the misdemeanor charges, Cunningham praised the California attorney general's office for its investigation of HP's ill-fated effort to root out the source of boardroom leaks, but said the defendants' actions were not criminal at the time they occurred.

"At worst, the conduct in this case amounted to boardroom politics and a betrayal of trust and honor, rather than criminal activity," the judge said, according to a transcript of his remarks supplied by the attorney general's office. The judge said the investigation nevertheless "achieved much public good," including helping spur the passage of state and federal legislation specifically outlawing "pretexting," or pretending to be someone else to secretly secure copies of their private telephone logs. In addition, the state reached a $14.5 million civil settlement with HP in December, the bulk of which is slated to fund state and local investigations into privacy rights and intellectual property violations.

Ralph Sivilla, a deputy attorney general, said after the hearing that state prosecutors still think criminal conduct occurred, but that the office was satisfied with this resolution of the criminal case because of the "chilling effect" the HP investigation had on similar sleuthing tactics. Thomas Nolan, one of Kevin Hunsaker's defense lawyers, said the defendants paid a "pretty heavy price" in being prosecuted and that "the people at HP, everyone, felt they were doing the right thing and basically didn't believe they were committing any crime.

"The judge's comments and the ultimate dismissal of the charges backed up that belief, Nolan said after the hearing. Five people, including former HP Chairwoman Patricia Dunn, were originally charged in October with four felony counts in the HP probe: use of false or fraudulent pretenses to obtain confidential information from a public utility; unauthorized access to computer data; identity theft; and conspiracy to commit each of those crimes. Charges against Dunn, who was accused of orchestrating the spying effort, were dropped in March. State charges against private investigator Bryan Wagner were also dropped, but only after he pleaded guilty to two federal felony counts of identity theft and conspiracy in the case. Wagner's sentencing is set for October in San Jose federal court, and the federal probe is ongoing.

HP CEO, CFO, EVP Exercise Options...

In a form filed with the SEC, Mark V. Hurd reported he exercised 100 000 options for $21.73 apiece and then sold 150,000 shares on the same day for $45.25 to $45.86 a piece.

Catherine A. Lesjak, CFO, reported she exercised 11,755 options for $15.75 apiece and then sold a total of 23,490 shares on Thursday and Friday for $45.34 to $45.70 a piece.

Executive VP Shane V. Robinson (strategy and technology officer) exercised options on 125,000 shares for $15.75 to $22.02 a piece. He sold the shares the same day for $45.26 and $45.38 each.

Open market purchases and sales of insiders must be reported within two business days of the transaction.

HP estimates FY07 revenue will be $100 billion

"While we still have considerable work ahead of us, I am confident we can continue to execute with discipline and deliver strong financial returns."

Mark Hurd

Journalists sue over HP spying scandal

journalists targeted in the HP phone tapping scandal are to sue the company for invasion of privacy. Dawn Kawamoto, Stephen Shankland and Tom Krazit have hired Los Angeles law firm Panish, Shea & Boyle which is currently preparing the suit. The three journalists, who all work for CNET's News.com, make up a third of the nine journalists targeted by private investigators.

Lawyer Kevin Boyle said that the trio are not seeking financial restoration, but are asking for punitive measures to be taken against HP. HP began the investigation to try and locate the source of a boardroom leak last year. However, investigators used illegal methods such as obtaining phone records for the journalists and their relatives by deception, otherwise known as pretexting. CNET Networks said that it was not part of the lawsuit but could launch its own action separately.

HP had hoped to settle the case by making a $250,000 donation on behalf of each journalist to a charity of their choice. Felony charges filed in the case against former HP chief executive Patricia Dunn were dismissed. Out of four other defendants facing felony charges, three were eventually charged with misdemeanours. HP has already settled a civil lawsuit filed by California's attorney general for $14.5m (£7.3m).

Federal government joins lawsuits against HP, Sun, Accenture

The U.S. Department of Justice threw its weight behind a whistleblower lawsuit against HP, Sun and Accenture, alleging that the companies violated federal claims laws by improperly charging government agencies for several years' worth of technology contracts.

In documents filed on April 12 and unsealed Thursday, the DOJ alleges that H-P, Sun and Accenture each "solicited and provided improper payments and other things of value," on technology contracts with several U.S. government departments and agencies from the late 1990s to the present.

H-P, Sun and Accenture are charged with making false claims to the U.S. government for work done involving information technology hardware and services contracts. In a statement, the DOJ said it believes that the tech giants engaged in kickbacks and undisclosed conflict-of-interest relationships with other companies with whom they worked on the government contracts. "The defendants have systematically solicited and/or made payments of money and other things of value, known as 'alliance benefits,' to a number of companies with whom they had global 'alliance relationships' or an agreement to work together," the DOJ said, in a statement.

The suit was originally filed in U.S. District Court in Little Rock, Ark., by plaintiffs Norman Rille and Neal Roberts, and under the whistleblower provisions of the U.S. False Claims Act. That act says that a private party can file an action on behalf of the U.S. and receive a portion of any fees recovered in the case. The act also said the U.S. may recover three times the amount of its losses, plus civil penalties, in the case.

H-P released a statement denying the charges and saying it is confident it engaged in appropriate business practices with the government. "We plan to vigorously defend this action and look forward to demonstrating that HP has done nothing wrong," H-P said.

Hewlett-Packard plans further $8 bln share buyback

HP said its board of directors approved an additional $8 billion to buy back company shares.

During its fiscal first quarter ended Jan. 31, the company already bought back some $2.3 billion worth of its shares and had an additional $3.3 billion of authorized funds remaining for future buybacks.

HP said the buyback would help offset dilution created by shares from employee stock option plans and return cash to stockholders, according to a filing with the U.S. Securities and Exchange Commission...

HP Shareholder Meeting

Shareholders rejected a proposal that would have made it easier for shareholders to field their own candidates during board elections

Another shareholder proposal to separate the roles of the board chairman and the CEO was also defeated.

However, stockholders approved a proposal to require the board to hold a shareholder vote for any future poison pill. Also known as a stockholder rights plan, a poison pill gives a board the right to sell new shares at lower prices as a way to prevent a competing party from acquiring majority interest in the company.

Shareholders also approved a proposal linking senior executive pay to performance. HP had urged shareholders to reject both nonbinding proposals. The company said it is disappointed with the vote but vowed to "review its current policy."

HP-gate : The End ?

What you will find in the comments part :

- Sept 7 : HP said to have spied on reporters
- Sept 8 : California Attorney General says HP tactics violate State laws, but unclear who to prosecute
- Sept 8 : HP's says Dunn will resign if asked by board
- Sept 8 : New York Times, CNET consider options over HP
- Sept 9 : Dunn is done ?
- Sept 11 : Feds and Congress ask for info !
- Sept 12 : HP's Board split over Dunn
- Sept 12 : Patricia Dunn to remain HP Chairman through January 2007 Board meeting and then demoted ! Board appoints Mark Hurd as successor
- Sept 12 : Keyworth says HP approved leaks !!!
- Sept 12 : HP insiders likely to face charges
- Sept 14 : HP spy scandal extends to employees !
- Sept 14 : Reporters 'outraged' over HP tactics
- Sept 15 : HP Execs asked to testify in Washington
- Sept 18 : Shareholder files suit
- Sept 18 : House committee awaits HP documents related to scandal
- Sept 18 : What HP Should Have Done
- Sept 19 : H-P security expert warned on leak probe
- Sept 19 : House committee receives H-P documents
- Sept 20 : House seeks more testimony in H-P case
- Sept 20: H-P considered spying on newsrooms !
- Sept 20: HP Scandal Reaches New Weirdness Level
- Sept 20: Did Mark Hurd approve a "sting" operation on a journalist ?
- Sept 21: H-P's Hurd to hold press conference on scandal sept 22
- Sept 21: HP shares down 5 percent as scandal deepens
- Sept 21: Democrat wants HP CEO to testify on leak scandal
- Sept 21: HP sponsors a privacy award...
- Sept 21: Hurd will testify before House committee sept 28
- Sept 22: Calif AG says no evidence to link HP CEO to crime
- Sept 22 : US Senate nears vote on HP-linked phone data issue
- Sept 22 : Mark Hurd named HP Chairman : Patricia Dunn is leaving Board.
- Sept 23 : HP Chair Resigns Amid Probe Fallout
- Sept 23 : Why Hurd needs to take some questions
- Sept 25 : HP Clears the Air, but Not the Cloud
- Sept 26 : HP Under Increasing Pressure to Overhaul Board
- Sept 26 : HP's most truthworthy man
- Sept 26 : The Men Who Conducted the HP Probe
- Sept 27 : Mark Hurd on the HP scandal
- Sept 28 : House panel releases HP testimony
- Sept 28 : Hypocrisy at Hewlett-Packard(fictional)
- Sept 28 : HP General Counsel Resigns Amid Scandal
- Sept 28 : Lawmakers Grill HP Over Spying Scandal, Making Comparisons to Enron and Watergate
- Sept 29 : HP Whistleblower Tried to Avert Scandal
- Sept 29 : 3 Execs Testify About HP's Spying Probe
- Sept 29 : Hurd: I'm not resigning
- Sept 29 : HP counsel leaves with millions in options, benefits
- Sept 29 : HP Goes to Washington (a tragi-comedy...)
- Sept 29 : Controlling The Damage At HP (everything you wanted to know about Mark Hurd).
- Sept 30 : As H-P scandal reaches peak, Hurd and HPQ are still solid
- Sept 31 : Internal Memo Details Hewlett-Packard Leak Hunt
- Oct 1 : Why Hurd needs to take some questions
- Oct 1 : 4 things HP's Hurd needs to do now
- Oct 2 : HP's costly scandal
- Oct 3 : HP CEO appears secure, but risks remain analysts say.
- Oct 3 : Hurd may have known about phone records in 2005
- Oct 4 : Reporters Reassigned in HP Spy Scandal
- Oct 4 : Indictments in HP case. But not for Mark Hurd.
- Oct 4 : HP's Hurd is contrite, but indictable ?
- Oct 5 : Investigations continue at HP
- Oct 5 : The Silver Lining in HP's Scandal
- Oct 6 : More Charges Possible in HP Spying Probe
- Oct 6 : Is Dunn Really A Felon ?
- Oct 7 : Fiorina could attract interest in HP leak probe
- Oct 8 : HP not alone with "rogue" investigations
- Oct 9 : Dunn calls allegations in HP scandal a 'myth'
- Oct 9 : Dunn said Perkins launched a disinformation campaign against her
- Oct 10 : Fiorina blames divisive HP board
- Oct 11 : Three in HP Scandal Plead Not Guilty
- Oct 14 : Calif. AG presses ahead with HP leak investigation
- Oct 21 : HP tells reporter security firm searched her trash
- Nov 2 : HP CEO responds to Congressional letter : he thought phone records were public...
- Nov 10 : Ex-HP Ethics Chief Pleads Not Guilty
- Nov 15 : Dunn pleads not guilty
- Nov 19 : H-P appoints first new board member since scandal
- Feb 12 : The New Yorker looks into HPGate
- Feb 27 : Ex-HP director laments corporate board trend
- March 1 : Dunn's lawyer blasts Perkins
- March 14 : Judge Drops Charges Against HP's Dunn
- April 24 : HP Ethics Chief Tackles Spying Scandal Aftermath : "the chances are "almost nil" for a repeat of last year's debacle".
- May 24 : Hewlett-Packard probe by SEC is settled

Once upon a time...

HP revealed in a filing with the Securities and Exchange Commission that it had used "an outside consulting firm" to obtain evidence that showed board member George Keyworth had disclosed information from board meetings to the media. Keyworth admitted he had spoken to the media about confidential board information and was asked to resign.

According the company filing, Keyworth refused to quit, saying that only shareholders could remove him from the board. Venture capitalist and H-P director Tom Perkins then quit in protest over how the Keyworth situation was handled.

The brouhaha grew out an investigation into press leaks that was launched by H-P's nonemployee director, Patricia Dunn, and covered information from meetings that took place both before and after the H-P board fired Fiorina in February 2005 and replaced her with former NCR chief Mark Hurd.

The latest upheaval at the Silicon Valley icon reads like a script from a soap opera...

HP vs. IBM

Hewlett-Packard phasing out US pension plan

HP is phasing out its defined US benefit pension plan, completing the process it started just over a year ago when it closed the plan to new and younger employees.

After Dec. 31, plan participants no longer will earn benefits in the DB plan. Instead, they will be eligible for an enhanced 401(k) plan match. HP's action is the second step the Palo Alto, Calif.-based technology giant has made to wind down the plan. In January 2006, HP closed its pension plan to new and younger employees and offered those individuals a beefed-up 401(k) plan in which the company matches 100% of employees' 401(k) salary deferrals, up to 6% of pay.

Employees whose combined age and service were at least 62 remained in the DB plan and a 401(k) plan in which HP matches 100% of employees' salary deferrals up to the first 3% of pay and 50% of employees' pretax contributions on the next 2% of pay. Starting Jan. 1, 2008, those individuals will move to the enhanced 401(k) plan. HP said the changes are "consistent with actions being taken by many of HP's industry peers and other large corporations." Other companies that have deployed a two-step approach to phase out their defined benefit plans include IBM Corp. of Armonk, N.Y.; NCR Corp. of Dayton, Ohio; and Sears Holding Corp. of Hoffman Estates, Ill.

Mark Hurd said to employees :
" As a result of this decision, we will have a one-time pension curtailment gain of approximately $500 million. We will use the savings from the pension freeze to offer
impacted U.S. employees the option to participate in an Enhanced Early Retirement (EER) program. This is a voluntary program and will be offered to the impacted
employees whose combined age and years of service equals 65 or more.

After the election period ends, we will assess projected program costs based on the number of employees who apply. If the projected costs exceed the accounting gain from freezing the U.S. pension plans, employees will be accepted starting with those that have the highest number of points.

This means that, it's possible, that not everyone who applies for EER may be accepted, which is different than programs we have offered in the past. The changes to the U.S. retirement program are consistent with actions being taken by many of our industry peers and
other large corporations, and will more closely align HP programs with industry-competitive practices. The nature of the treatment of this program has been increasingly
challenging for us to deal with and inhibits our ability to grow. We are therefore making a choice not to continue to differentiate Hewlett-Packard in this area.

About a third of the employees within the United States will be affected and I want to acknowledge the personal impact that this may have. Employees included in this group
will receive further details this week. Additional materials are available on the portal including how to submit a question.

Finally, the benefits received by current U.S. retirees or other active employees will not be affected one bit by today's announcement."

The 100 Top Socially Responsible Companies: Where's Hewlett-Packard ?

San Jose Mercury News Blog

For the first time in the seven-year history of the "Top 100 Corporate Citizens" list, Hewlett-Packard didn't make it.

The list by Corporate Responsibility Officer Magazine includes 15 Silicon Valley companies that are ranked as socially responsible based on data collected by KLD Research & Analytics. If you think about what the pretexting scandal from last year cost HP, this is part of the fallout. After all, spying on your own employees and journalists can't be called "socially responsible" in anybody's book.

Here's what the list makers said about HP:"Missing from the list and from the top 10 for the first time ever is Hewlett-Packard. Like many companies on the list, the Palo Alto, Calif., computer company has an impressive record in giving to the community, creating a diverse, fair workplace and actively protecting the environment. But last year, HP was charged with using illegal methods known as "pretexting," or pretending to be someone else, to investigate leaks of information from the board of directors. Patricia Dunn resigned as Chairman of the Board last September in the wake of the scandal, and HP paid $14.5 million to settle civil charges with the California Attorney General. The company is still under investigation by the U.S. Securities and Exchange Commission (SEC), the U.S. Department of Justice and the Federal Communications Commission."

HP has a long way to go climb out of the hole it dug : fairness toward employees is one of the criteria....

HP pays $8.6-m bonus to its CEO in a year of scandals

Mercury News

HP Chief Executive Mark Hurd took home more than $19 million during 2006, including one of the largest cash bonuses in Silicon Valley history, the company disclosed Tuesday.

In a year that saw a high-profile boardroom spying scandal and a doubling of the company's profits, Hurd was paid $1.4 million in base salary and an $8.6 million bonus as part of a total compensation package of $19.2 million, not including a grant of 500,000 stock options.

In 2005, Hurd received $24.4 million, including signing and relocation bonuses, along with 1.15 million stock options. Most top HP executives, including Hurd, received fewer restricted stock and option grants and only a slight bump in 2006 salary, but collected bonuses more than double those of previous years. Vyomesh Joshi, executive vice president of HP's Imaging and Printing Group, received a $2.4 million bonus and $1.9 million in stock, vs. a $1 million bonus and $4.1 million in stock in 2005.

``When you see somebody like HP, clearly a thought leader in this area, saying, `We're going to keep salaries at a modest increase, but we're going to allow the team to earn more on the bonus side,' the reasoning behind it is that they're going to be a performance-based culture,'' said compensation expert Steve Patchel of Watson Wyatt.

The rise in cash compensation and drop in stock grants might mean that HP is placing a greater value on short-term performance at the expense of long-term returns, Patchel said. "We are becoming more performance-based with regard to our compensation,'' said HP spokesman Ryan Donovan. "The goal is to tie as much of our top executives' compensation as possible to their performance at the company.'' Donovan declined to comment on the balance of cash bonuses vs. stock grants.

Hurd's $8.6 million cash performance bonus puts him in lofty company. Oracle CEO Larry Ellison received a $6.4 million bonus in 2006 along with his $1 million salary, and a $6.5 million bonus in 2005 on top of a $900,000 salary. Brian Halla, chief executive of National Semiconductor, received a $5.3 million bonus in 2006 on top of his $890,000 salary.

HP's executive pay packages include reimbursement for an annual physical exam, $18,000 in financial counseling and personal use of the company's corporate jets, though they do have to pay tax on aircraft use. HP covers the first 25 hours of Hurd's personal use of HP aircraft, and provides him a mortgage-interest subsidy, on top of a $2.75 million relocation benefit in 2005.
Hurd is credited with turning HP around after taking over in March 2005 from Carly Fiorina, who had been ousted by the board in February. The company's 2006 income was $6.2 billion, compared with $2.4 billion in 2005.

HP's stock price has risen 94 percent since Hurd joined, climbing 38 percent in fiscal 2006 to $38.74. It closed Tuesday at $42.31. The company's market capitalization grew 33 percent to $105.8 billion during 2006. It now stands at $115 billion, up more than 80 percent since Hurd took over.

Around Labor Day, news of HP's spying scandal broke, forcing Hurd and then-board chairwoman Patricia Dunn to combat allegations that HP had hired investigators who used deception to obtain phone records of board members, journalists, employees and others as part of an internal company probe ordered by Dunn into leaks of confidential board meeting.
Dunn, who resigned in late September in the scandal's wake, was paid $155,338 in stock and $18,000 in cash for her board service. The company did not disclose her severance package (if one exists), nor did it disclose possible severance packages for others who resigned in connection with the spying scandal, such as high-profile general counsel Ann Baskins or senior counsel Kevin Hunsaker.