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HP CEO Apologetic Before Congress

September 29, 2006

Reading from a prepared statement before a congressional committee, apologetic Hewlett-Packard CEO Mark Hurd said if HP's founders were alive today they would be “appalled” and "embarrassed.”

Testifying to the House and Energy Commerce Committee, Hurd went on to apologize to those whose privacy was infringed upon including nine journalists and their families, two current HP employees, seven former or current HP board members and their families.

“What began as a proper and serious inquiry of leaks to the press of sensitive company information became a rogue investigation that violated our own principles and values,” he said.

Leaks to the media, specifically a January report published by CNET News.com, prompted an internal company investigation into HP's board of directors. The company admitted in an Aug. 31 filing with U.S. Securities and Exchange Commission that a data-gathering technique known as "pretexting" was used in the investigation. Pretexting is a method used to essentially hack into someone else's personal information, such as phone records, under false pretenses.

In front of the committee, Hurd again conceded that “to vary degrees, these individuals were investigated through the use of pretexting.”

In recent months the fallout from the investigation has seen the resignation of several high-ranking HP executives. In May, HP Director Tom Perkins resigned in protest of the board investigation. George A. Keyworth II, who admitted to being the source of the media leak, resigned in September. Former Board Member Patricia Dunn, who headed the internal investigation and also testified in front of the congressional committee, stepped down from the board in late September. Also in late September, HP general counsel Ann Baskins resigned.

Hurd rationalize what he called “this current mess” by saying: “The question remains: how did such an abuse of privacy occurred in a company renowned for its commitment to privacy? And it's an age-old story that the ends came to justify the means. The investigation team became so focused on finding the source of the leaks that they lost sight of the values of this company. They lost sight of the values that this company has always represented. This company was built on integrity. If Bill Hewlett and David Packard were alive today, they would be appalled. They would be embarrassed. And that is the way the great majority of the people in our company feel.“

To read Hurd's statement, visit: http://i.i.com.com/cnwk.1d/pdf/ne/2006/hurd_remarks.pdf