Ethics in Corporate Business

RRS · Post by **RRS** » Wed Aug 11, 2010 1:27 am

Silicon valley is rife with Mark Hurd's abrupt departure (or forced departure from board) from HP. Rumor mills haven't stopped since Friday evening.

HP lost $10 billion in market value (I think that will come back once HP names a permanent successor). The HP version, Mark version and the woman who helped in bringing him down version are all different. But shouldn't the investors need to know the 'real' truth?

If he indeed crossed HP's or any corporate entity's business ethics in falsifying the expense reports, he shouldn't receive $34.2 million severance package (pay,stock options and RSUs).

Why the code of conduct is strict only on lower level employees? If a smaller fry was caught doing what Mark Hurd did , he/she would be shown the door with just box of the personal belongings and not this fat package. Plus no company will touch him/her if the background investigation reveals firing. But Mark Hurd will be pursued by Fortune 500 companies relentlessly in coming months in addition to receiving this package. Sad indeed !

returning_indian · Post by **returning_indian** » Wed Aug 11, 2010 1:30 am

RaReSha3;315559Why the code of conduct is strict only on lower level employees? If a smaller fry was caught doing what Mark Hurd did , he/she would be shown the door with just box of the personal belongings and not this fat package. Plus no company will touch him/her if the background investigation reveals firing. But Mark Hurd will be pursued by Fortune 500 companies relentlessly in coming months in addition to receiving this package. Sad indeed !

You don't get fired for stealing a pen or tape or staples. This is exactly what 20k is for CEO of a big company.

oasis138 · Post by **oasis138** » Wed Aug 11, 2010 1:32 am

returning_indian;315560You don't get fired for stealing a pen or tape or staples. This is exactly what 20k is for CEO of a big company.

But how silly is this chap....he has tarnished his rep for 20k. I mean isnt that stupid that you would risk millions of payout for 20k??

returning_indian · Post by **returning_indian** » Wed Aug 11, 2010 1:33 am

oasis138;315563But how silly is this chap....he has tarnished his rep for 20k. I mean isnt that stupid that you would risk millions of payout for 20k??

I don't believe it to be a real story.

oasis138 · Post by **oasis138** » Wed Aug 11, 2010 1:38 am

returning_indian;315565I don't believe it to be a real story.

Maybe its not true but then even if it is we have seen this time and again...little jhonny trumps money in the bank! ;)

returning_indian · Post by **returning_indian** » Wed Aug 11, 2010 1:38 am

RaReSha3;315566Desi, please continue the discussion in the new thread I opened as I was interested in knowing why should the company be liable for original contract of severance if the employee violated the code of business conduct of the company?

It is for board to decide.

oasis138 · Post by **oasis138** » Wed Aug 11, 2010 1:43 am

I would add that i read on wsj that the stock under his tenure was up +134% compared to mid teens for Nasdaq.. So in the sense that the CEO gets credit/blame for stock price he did extremely well for the shareholders.! More than doubling the mcap was pretty darn good!

RRS · Post by **RRS** » Wed Aug 11, 2010 1:45 am

returning_indian;315572It is for board to decide.

HP is a public company and investors need to know why the employee who violated the company's code of business conduct(COBC)be given severance package? Honoring the contract is a cause which should be turned down if the employee violated the company's COBC IMO. Why is it not?

returning_indian · Post by **returning_indian** » Wed Aug 11, 2010 1:47 am

Anyone remember how Fiorina was forced out? Trend of board at HP?

returning_indian · Post by **returning_indian** » Wed Aug 11, 2010 1:48 am

RaReSha3;315579HP is a public company and investors need to know why the employee who violated the company's code of business conduct(COBC)be given severance package? Honoring the contract is a cause which should be turned down if the employee violated the company's COBC IMO. Why is it not?

Isn't board made up of those investors? Plus they do not have to divulge any details (unless required by law) if they think it can hurt company' s profits.