Congressmen question HP chief's stock sale

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This article misses the key purpose of Congressional investigation which I believe is to alert those who invest (especially pension fund managers) to what must be a common manipulation by criminally minded corporate officers.

The notion that stock price represents the approval of share holders falls apart when a corporation has an active stock repurchase plan. The appearance of impropriety is automatic with HP's CFO resignation announcement.

Lets just assume that HP's CFO or Treasurer was enticed to repurchase shares not for investment reasons benefiting shareholders but rather for reasons benefiting other corporate officers, in particular Hurd. I think we have to make that assumption and in the absence of contrary evidence judge Hurd harsly for it. Why is he still president of HP?

On a wider scale, did HP follow Microsoft's criminally minded managers in the repurchase plan? Shouldn't Microsoft's board close that plan as it is likely being used to hide mismanagement of the company and forstall managment replacement?

Posted by: mighetto   Posted on: 12/14/06 You are currently: a Guest | Members login | Terms of Use

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