Corporate Turmoil: Senior Executives Depart Amid Controversies and Investigations

Patricia C. Dunn, Hewlett-Packard's chairwoman, agreed to resign in January after revelations that the company had spied on board members, leading to a scandal that implicated senior executives and raised allegations of corporate espionage. This incident came on the heels of a series of corporate controversies, including a Securities and Exchange Commission investigation into Dell's accounting practices and a federal probe into Bristol-Myers Squibb's efforts to suppress generic versions of its bestselling drugs. Meanwhile, GlaxoSmithKline settled a $3.4 billion tax dispute with the Internal Revenue Service, and Ford Motor Company accelerated its cost-cutting efforts by offering incentives to 75,000 workers to quit the company. The global financial landscape remained volatile, with OPEC ministers deciding not to reduce production despite falling crude oil prices, and Treasury Secretary Henry M. Paulson Jr. warning Chinese leaders about their unfair economic policies.

Key Takeaways:

• Patricia C. Dunn, chairwoman of Hewlett-Packard, will resign in January after a scandal involving corporate espionage.
• A Securities and Exchange Commission investigation has been launched into Dell's accounting practices, leading to a decline in the company's shares.
• Bristol-Myers Squibb fired its CEO, Peter R. Dolan, amid a federal investigation of his efforts to suppress generic versions of the company's bestselling drugs.
• GlaxoSmithKline agreed to pay $3.4 billion to settle a tax dispute with the Internal Revenue Service.
• Ford Motor Company is offering incentives to 75,000 workers to quit the company as part of its cost-cutting efforts.
• OPEC ministers have decided not to reduce production despite falling crude oil prices.
• Treasury Secretary Henry M. Paulson Jr. has warned Chinese leaders about their unfair economic policies, including keeping the value of their currency artificially low.
• Patricia C. Dunn was chairwoman of Hewlett-Packard, although the article does not specify when she took office.
• Dell's shares have lost about a third of their value in the last year.
• Bristol-Myers Squibb's CEO, Peter R. Dolan, was fired amid a federal investigation.
• GlaxoSmithKline agreed to pay $3.4 billion to settle a tax dispute with the Internal Revenue Service.
• Ford Motor Company has announced further white-collar job cuts.
• The company's sales of its best-selling light trucks have been hurt by high gasoline prices.
• Ford has lost $1.5 billion so far this year.

Sources:

• The New York Times: January
• The New York Times: September 2007
• The Wall Street Journal: September 2007