October 8, 2006 10:00 PM PDT

Dunn, Fiorina lash out at HP board

An old-boy network at Hewlett-Packard contributed to the legal troubles of former Chairman Patricia Dunn and undermined the leadership of former CEO Carly Fiorina, the women suggested Sunday on national TV.

In separate interviews on the CBS television news program "60 Minutes," both Dunn and Fiorina say while each was still working for HP, former board directors Tom Perkins and George Keyworth plotted against them.

"Clearly they were aligned in how they thought I should reorganize the business," Fiorina, who was ousted as HP's CEO in 2005, told reporter Lesley Stahl. "But these were people that, for all their gifts and all their accomplishments, didn't understand what running an $85 billion company is all about."

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Stahl said during the program that both women appearing on the same show was a "quirk." Fiorina's memoir, titled "Tough Choices," just happened to be hitting store shelves at the exact time when Dunn was being charged for allegedly masterminding a spying campaign on journalists, HP board members and employees.

Both women were highly critical of the former HP board members at a time when the company is reeling from the spying scandal, which has led to criminal charges against Dunn and HP executives. Dunn resigned from HP's board on Sept. 22.

Perkins could not be reached for comment.

Dunn was the catalyst of HP's investigation into the source of news leaks at the company, said California Attorney General Bill Lockyer, who last week charged Dunn and four others with four felonies, including identity theft.

During the leak hunt, HP has acknowledged that the company obtained private telephone records belonging to journalists, HP employees and board directors.

If convicted, Dunn and the others charged could face 12-year jail sentences.

Despite scores of documents that show Dunn was intimately involved in the operation, she doesn't accept personal responsibility for criminal wrongdoing and claimed during the TV interview that she is the victim of a "disinformation campaign" directed against her by Perkins.

Perkins, one of the founders of Silicon Valley's most prominent venture capital firm, Kleiner, Perkins, Caufield & Byers, was the man who forced HP to go public with the truth about the company's leak hunt and the methods used.

Dunn said that Perkins has a vendetta against her for disclosing to the board the source of the leak: Keyworth, a friend of Perkins.

Keyworth acknowledged being the leak after being confronted with telephone records that showed he contacted CNET News.com reporter Dawn Kawamoto shortly before she published a story about an HP board meeting in January. Keyworth resigned from the board in September.

Perkins was outraged over Dunn's disclosure about Keyworth to the full board and resigned in May. Since then, Perkins has had it in for Dunn, she told "60 Minutes."

Perkins "wanted me off the board," Dunn said during the interview. "I don't know if he ever thought through the consequences that would go into getting me off the board."

Asked whether she believed Perkins was responsible for her legal troubles, Dunn said: "I don't think I would be standing here today if Tom had handled this different."

In a statement Monday, Keyworth's lawyer said that the former board member "continues to cooperate with governmental investigators looking into matters associated with the illegal spying campaigns initiated in 2005 and 2006."

In her new book, Fiorina supports Dunn's claim that Keyworth and Perkins were highly critical of Dunn.

"He had been derisive of Pattie Dunn's capabilities ever since I had known him," Fiorina writes of Keyworth.

Fiorina said that she suspected Perkins and Dunn of playing a big part in the board's decision to oust her. Fiorina said that the company flourished under her leadership and that she believes that she was fired for "personal" reasons. She lamented the way HP handled her firing--without thanking her--and suggested that HP's male-dominated culture was partly to blame.

"I think somehow men understand men's needs for respect differently then they understand it for a woman," Fiorina said. "I'm disappointed to have to say that, but I think it's undeniably true."

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38 comments

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What crap
Fiorina will never change. It's the Men's fault BS. washes about as well as Dunns pathetic ignorance plea. Let's feel sorry for the girl and free her on a cancer pardon.

Did Fiorina really think everyone was going to agree with her absurd ideas?
Posted by GrandpaN1947 (187 comments )
Reply Link Flag
Just kills me
Two members of the board find fault in the direction management is moving in. That's their job, right? Well not if the board members are evil ole MEN and the managers are poor, defenseless lil ole WIMMIN. They took such pride in things when all was well, but now that their house of cards collapsed on top of them it's all the guys fault, it's a resentful old boys network. How did they get hired in the first place if an old boys net was against them? It's just shift the blame and pass the buck, same ole and same ole.

And Fiorina was the one who ran Lucent into the ground. She left just as things there were turning bad. How she gets another CEO job is unfathomable...
Posted by Celent (1 comment )
Link Flag
Saw the show...
The overwhelming emotion I experienced during both of these broadcasts was one of shame & disgust. Neither of these women showed they know what ethics & morals are. It was just "the ends justify the means". If I or others I know were to exhibit the same behavior...we would immediately be behind bars & lost everything we had.

The show this past evening reminded me of the same attitude which I read about & saw on film during the Nuremburg trials. The only difference is that these women & others like them are rewarded for their lack of moral/ethical bearings. It is very shameful that American business has come to this.
Posted by furball123A (124 comments )
Reply Link Flag
The Ends Justify The Means
It is what got WalMart to it's position of kiling any viable mom & pop competitor. Further, it is decimating the American middle class, via off-shoring of any job worth doing that corporate execs don't want to pay American wages for.

I only hope I live long enough to see these corporate jagovs spend thier final days in jail or flaming at the stake for what they have done to the American people.
Posted by Too Old For IT (351 comments )
Link Flag
It is sad...
... that any of these happened to HP. The board is representative of the vision and missions of a company. It is quite disappointing that some matters are being brought out to public even reaching that cruel point of making personal attacks in defense of various interests. I hope this ends soon. It is not doing any good for all parties concerned, men and women alike...
Posted by Mendz (519 comments )
Reply Link Flag
again, find some adults..
Like it or not, H-P has gathered this current and past group of
children (board, officers, & top employees) who play at being adults
and try and run a business in the real corporate world. Who is there
at H-P to decide where to find adults?
Posted by stopspin (3 comments )
Reply Link Flag
How they got there
They were elected to the board by the stockholders. All it takes is winning enough votes. Unfortunately, many of those on the board hold large amounts of stock, thus increasing their chances of remaining on the board.
Posted by Seaspray0 (9714 comments )
Link Flag
Most felons are likely...
...to blame others.
Posted by Stan Johnson (322 comments )
Reply Link Flag
Perkins and Keyworth are the real felons
Constantly leaking corporate secrets to the press may or may
not techincally be a crime, but morally that's a felony if they kept
doing it. Keyworth kept doing it. Perkins has ackowledged being
a second source -- his friend Keyworth being the first source --
at least once.

What Dunn did may technically have been a crime, but she had
to protect the interests of thousands of shareholders -- you and
me -- from Keyworth and Perkins. In my mind, morally
speaking, she is at best guilty of a misdemeanor.
Posted by mckoder (15 comments )
Reply Link Flag
Crying all the way to the bank ...
Did anyone mention the severance package Ms. Fiorina got? That's the true crime - executive compensation that's way out of line with what they're actually worth to the firm.
Posted by fshattuck (11 comments )
Reply Link Flag
A little more information please...
When you write a story in which the subject parties are making serious accusations, it would help if you elucidated a little more background information about the issues involved. For example, what exactly did these ladies do or not do that's got everybody all hung up in their shorts?
Posted by rneubert (7 comments )
Reply Link Flag
You have to read daily......
All the information on this has been out in the public for over a year now. You just have to take the time to read it. This is nothing new. Where have you been?
Posted by uglo (36 comments )
Link Flag
It's like a rule out there @ HP...
If you have letters in your title, you are expected to step on the other little people on our planet. Rude rude rude. Hope they can see the writing... Doubtful, though. Had to work with them before, and this was no surprise to me.
Posted by SleeStaK911 (30 comments )
Reply Link Flag
the fix is in
Both Dunn and Fiorina are innocent parties that others were out to get. Please, give me a break! We've know the HP Board was bad for many years. Fiorina wanted a rubber stamp, which she got on the Compaq Merger, save one brave Director. When, even they, got tired of the self-promotion, they tried to get her to change. She wouldn't and was gone. It was the only act of courage this bunch has shown.

BTW, Perkins was not on the Board at the time of Carly's ouster. He re-joined just as it was happening. Let's tell the truth here.
Posted by HPLifer (2 comments )
Reply Link Flag
She knew what she was doing..
Therefore blaming Perkins for being harsh isn't a good excuse. If Perkins helped her to cover up, she is still guilty !
Posted by SpiritSeeker (1 comment )
Reply Link Flag
Dunn and Fiorina
Both these women never accepted "responsibility" for the things they have done and are now playing "victims" because they are women. If HP is really male-dominated they would not have had their respective positions for this long.

Fiorina needs to sell her book and Dunn does not want to go down alone. They have good reasons than anyone to muddle the discussion. I have seen Dunn defending herself infront of Congress Committee. She is always willing to take credit for anything that is postive but as per her claim that she does not know the details of how the investigation has been carried out, would look to naive for a Chairman of Board of Directors for a Corporate like HP.
Posted by YankeePoodle (785 comments )
Reply Link Flag
Dunn & Dumber
Halloween is coming early this year. The witches are out in force.
Posted by felgercarbnaysay (49 comments )
Link Flag
I'd have more respect for them...
if they told the truth. Instead, one seems to preparing a book and hitting the tour circuit to promote it and women in business. The other was caught and made some bad decisions. now, she is going with the "pity me, I'm ill" spin. Please.
There are still "old Boy" companies, and I am sick of them. But you either play or pay. Look how third HP woman plead 5th. I think the entire HP corporation stinks. No more stock ownership for me.
It's like Martha Stewart: Rather than saying "Hey, I made a mistake, panicked and sold some stock based on insider info. Slap my hands.", instead she lies and get's caught at it.
Posted by Below Meigh (249 comments )
Reply Link Flag
So Dunn was FORCED to break the law!
Those evil MEN on the HP board used their mind-control rays to force poor Patsy Dunn to knowingly and eagerly take action that she absolutely knew was flagrantly illegal! What a riot!

What a contemptible megalomaniac. Can there be any doubt that she's precisely the type of person to think she's entitled to commit any felony she wants? Dunn really needs to learn that now is the time to shut up.
Posted by MikeDson (50 comments )
Reply Link Flag
Oh well!
Oh well, these females own deliberate errors , mistakes,plus Patty's coverups and very deliberate breaches of assorted State and Federal Laws including a false SEC directors resignation filing in MAY '06 by innocent little "I'm Innocent" Patty!, makes Martha Stewart look like an angel in comparison!(Don't forget the HP's board hired Ms Fiorina as ceo and should be forced to accept full responsibility for that cost plus error!)

Sadly, all this was outlined in a book written by Dr Laurence J Peters, back in 1968!

As for paying the flame game, blame the old boys for their own errors, they will lose every time when truth outs!

Only a moron or an adherent of the "peter principle", will blame others for their basic poor judgement and routine mistakes, from their inferences and dysfunctionality ,one could question even their ability to handle the simple task of using an oven in the kitchen?
Posted by heystoopid (691 comments )
Reply Link Flag
Fiorina Shown The Door
I was amused and disgusted by Carly's statement last night on 60 Minutes how she was not given the courtesy of being told face to face that she was being fired.

Well Carly.... Welcome to the club!!! That's exactly how the 15,000 + former HP Employees were fired too. How'd that make you feel? Crummy huh? Except no one should feel sorry for you since you got just a bit more severance than we did; 1 month salary for every year of service versus the millions of dollars and benefits. Don't blame the board for your ills. They were doing their job by questioning and challenging you. You should've been held to the same performance evaluation methods as everyone else. HP stock dropped like a rock under your leadership. Don't blame it on the economy and a tech industry downturn. You think a mortal HP employee can use that same excuse??? I guess they were tired of being your "yes men".
Posted by 28James28 (2 comments )
Reply Link Flag
Disgusting
It was disgusting to me to see and hear Carly Fiorina on 60 Minutes. If I recall correctly, she received a severance package worth something like $40 million. That's many many times more money than the average person like myself will earn in a lifetime. She apparently will not be happy unless she is a billionaire like Bill Gates or Steve Jobs. How does she think the average engineer like myself feels when we are let go for no reason and receive two weeks severance pay? It is truly sad that those who are in the "inner circles" in business cannot even imagine what life is like for those of us who are not.
Posted by PhilipEWhite (11 comments )
Reply Link Flag
It's not about money
Believe it or not, her gripe is not about the money. Those who have led organizations would understand. Right or wrong, if you have a certain vision and believe that you have the power to execute according to the vision, it hurts to have the rug pulled from underneath you before you are proven right or wrong. Sure, she got a nice package. But she was wealthy before then. She was vilified for the HP-Compaq merger but post-mortem would show that it was not the company-killer move that some made it out to be. That's the source of her gripe.
Posted by Sonicsands (43 comments )
Link Flag
I absolutely agree
Your comments are absolutely, totally, completely, spot-on correct. Well said. I wasn't fired as an engineer from HP; I worked there years ago when HP was a wonderful company to be employed by. I only left to go to college to earn my engineering degree, otherwise, I probably would have been there when heads began to roll! I find myself getting a headache trying to figure out how Fiorna could claim that HP flourished under her leadership???? Why are women usually the ones to crow to most when they get top jobs, and then cry "sexist foul" when they do a lousy job and get fired? I read about male CEO's who get axed every time I pick up an industry publication. I cannot recall any of them complaining that they were fired only because they were men??
Posted by kosimov (3 comments )
Link Flag
It is the "HP Way"
I worked there long enough to know- nobody except the VPs are allowed to make a decision, except when to have another meeting. At the top, nobody would wipe their heiny unless there was a higher level executive authorizing it.

So we have a culture of indecision being led by some of the most amoral leaders imaginable. Sounds like the Beltway doesn't it?
Posted by RainCaster (164 comments )
Reply Link Flag
The gender card
Give me a f'ing break. Multi-millionaire women whining that all their problems are because they're women.

Fiorina's not doing her reputation any favors getting herself lumped in with Dunn.

Memo to Carly: when you're CEO and the company is underperforming you should expect the board to give you a hard time.
Posted by solrosenberg (124 comments )
Reply Link Flag
What about Keyworth & Perkins
Lots of fun attacking these two women but what ab out the character of Keyworth and his protector and henchman Perkins? Leaking secret information from board meetings and the other guy lying to protect him until he was caught then trying to make it look innocent. I think these two guys were definitely out to wipe out these ladies. Rich, powerful, conceited,egomaniacs. Who could ever trust either again?? Give those ladies a break!!
Posted by Claytonroad (1 comment )
Reply Link Flag
What about Keyworth & Perkins?
I would agree that Carly was not given a fair shake for the work that she did, but what Patti did was illegal. There is no way to slice or dice it. Granted our government fostered her behavior with there own actions, but its no less illegeal. Keyworth and & Perkins could be guiltly of poor ethics, but depends on how you look at it. Even if you said they have poor ethics, poor ethics is not a crime.
Posted by VI Joker (231 comments )
Link Flag
Pattie Dunn--Hero!!!
RE: Pattie Dunn

It seems the media attention of Pattie Dunns actions are
focused on the tactic rather than the strategy.

For the past several years the government has closely
scrutinized public companies for their reporting methodologies
and obligations to shareholders. Corporate officers and boards
have been under extreme pressure, walking on eggshells,
spending enormous amounts of money to operate within SEC
regulations hoping to avoid legal action

With this in mind its completely understandable that Pattie
Dunns actions were to protect Hewitt Packard and the
shareholders. Had she not investigated its as likely she could
have been charged with negligence. She clearly had a mandate
to protect the companys assets.

Frankly, board members of public companies are in the public
eye and are responsible to their shareholders. They need to
expect this type of investigations much as politicians are subject
to public scrutiny. Generally board members are well paid to sit
on the board and their behavior should be of the highest
professional standards, if theyre not willing to be subjected to
this type of investigation they shouldnt be on the board.

Bottom line she did an investigation and uncovered the leak.
She should be applauded rather than condemned for her
actions&shes a hero!

If one isnt the FBI, CIA. Or NSA how are they supposed to gather
the information necessary to close the leak?

Furthermore, the government should be criticized for wasting
taxpayers money to investigate her&her actions should be a
standard for public companies. Id be proud to be a
shareholder of a company with the morality shes demonstrated.

Clearly theres a story here!
Posted by WmPoet (3 comments )
Reply Link Flag
Mark Hurd - The Anti-Fiorina
It's amazing that these two women went on national TV and flat out embarrassed themselves and their prior company, further validating that they should have never been in a position of power. Neither claimed any accountability for what happened.

True leaders understand that they're ultimately accountable for the actions of their respective organizations, whether they were directly involved or not.

Mark Hurd understands this and that is why he's in charge and the two jersey girls are out. True leaders don't go on national television and pass the buck. True leaders stand up and take accountability for their actions. During the congressional hearing, Hurd said (paraphrasing) - I/HP made a mistake and we'll make more...The true test is in how we fix those mistakes and make ourselves better as a result'...That is true leadership.
Posted by brcollins (2 comments )
Reply Link Flag
Just like JWB
Dunn just used a page from JWB book: "those are our enemies, screw the law for your own good".
Posted by alegr (1590 comments )
Reply Link Flag
Spare me
Because you're not the FBI, CIA, or NSA you cannot break the law and violate the civil rights of others! How do you find leaks? The same way IBM, Microsoft, Intel, and others do - you create a bunch of silly code names and disseminate information using said names to different folks at different times and then find out where they show up.
Posted by tigerz2006 (1 comment )
Reply Link Flag
Dunn was stupid, Fiorina was overaggressive...
In reading this article, Dunn and Fiorina were ultimately squashed by the good ol' boy network, as it was called. However, it still does not excuse Dunn for being stupid in doing something so illegal, unethical, and immoral. I believe her actions alone is an insult to the working women of America who are trying to work legally, ethically, and morally to earn a living.

Fiorina was not like this. Instead, I believe she was way too overaggressive in purchasing Compaq and getting rid of the Scientific & Measurement division ... the culture shock, together with the major dip in the profits (in response to the overpriced purchase of Compaq), would have been enough to doom any CEO. She just so happened to be a woman CEO who got nailed.

Both should use their experiences as a lessons learned and not blame anyone about their demise. Then move on with life.

--GIF
Posted by treet007 (123 comments )
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