Joint Message from Patricia Dunn and Mark Hurd September 12, Hello, I m Patricia Dunn, chairman of the HP board.
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1 Joint Message from Patricia Dunn and Mark Hurd September 12, 2006 Hello, I m Patricia Dunn, chairman of the HP board. I know that many of you have read the media coverage and speculation regarding the recent actions of the HP board. It is important to me that I address you as employees of Hewlett-Packard and share my personal perspective and reflections. Having served on the HP board for eight years, I speak from my heart when I say this situation is the last thing I ever wished for, intended or expected. If there was any way I could course-correct some aspects of the investigation I would. I wish this had never happened. I apologize personally, deeply and sincerely to everyone affected in any way either within HP or outside of the company. This matter has caused me and HP major distress and embarrassment. The responsibility and accountability to investigate and deal with the leak issue lay firmly with me as chairman of the board. I took this responsibility very seriously. I initiated this inquiry at the urging of many directors to identify the sources of the leak. This followed an earlier enquiry initiated by my predecessor that did not reveal its source. The leaks were a serious breach of HP s Standards of Business Conduct, which are equally applicable to board members as they are to all HP employees. It was my fiduciary responsibility to work to resolve this situation. No board can function under such circumstances as it destroys the trust that is essential for a functional board. We have just now begun the journey of rebuilding that trust. You should realize that I was a full subject of this investigation. I could not oversee every detail. As reported, doubt has been raised as to whether the investigative techniques were appropriate. These techniques were practiced on a number of individuals including certain directors, two employees and a 1
2 number of individuals outside the company including journalists. I extend my sincere apologies to those individuals who have been affected. What happened here is contrary to HP s values and business practices. And for that I will always be deeply sorry. Earlier today, we issued a press release that was distributed to you at the same time we made the announcement to the external world. We announced the following decisions with the full backing of the HP board: I will remain as chairman through the company s January 18, 2007 board meeting. At that time, Mark Hurd will assume the responsibility of the integrated role of CEO and chairman of the board. I will continue to serve as a director. I believe this is the right move in order to reflect the value of accountability that is so important to Hewlett-Packard. In addition Dick Hackborn has been designated lead independent director also effective in January. George Keyworth has resigned from the board effective immediately. There is no one right way to structure the leadership of a publicly held company. In some instances a board structures the role of CEO and chairman separately and in others combines these responsibilities. In this instance, the HP board made the decision to integrate the roles based on Mark s proven leadership and his ability to unify the board and build trust. In addition, the board is fully confident in his commitment to the highest standards of governance and the appropriate sharing of responsibilities between the CEO and the board. I am very proud of the progress HP has made in the last 18 months. During the remainder of my tenure as chairman I look forward to continuing the transition that is already so underway, including expanding the board, continuing to improve our corporate governance standards and bringing the current issues to resolution. In doing so, Mark can continue to focus on HP s business priorities. 2
3 With that I d like to turn it over to Mark to share his thoughts with you. Thanks Pattie. I want to thank you for your strong leadership and always acting in the best interests of Hewlett-Packard. I look forward to continuing to work with you. I d like to begin by also offering my apologies that certain events have resulted in HP s reputation being called into question. Integrity is core to everything we stand for both within HP and in our dealings with our customers. We would never knowingly do anything to compromise that, but clearly things have happened that are unacceptable. The actions we are taking will address these issues. The HP Standards of Business Conduct is our code of ethics. They encompass the basic principles that govern our ethical and legal obligations to HP. Any violations of our standards are unacceptable to Hewlett-Packard and we will take appropriate action. We have completed a thorough investigation, and we are taking the following actions: 1. We are cooperating fully with the investigations that are proceeding 2. We are acting on recommendations from outside counsel, including engaging an external firm so that in the future our investigative methods and processes are handled in a manner that not only complies with the law but also will be aligned to Hewlett-Packard s Standards of Business Conduct. I want to reiterate my belief that this situation has nothing to do with the strategy or operations of Hewlett-Packard. The progress we have made is a testament to the hard work and contributions of the people of HP. Thank you once again for your leadership and commitment. We will continue to live HP s values that govern and guide our behavior. These have not changed and will not change: 3
4 We are passionate about customers We have trust and respect for individuals We perform at a high level of achievement and contribution We act with speed and agility We deliver meaningful innovation We achieve our results through teamwork and We conduct our business with uncompromising integrity. This situation is not indicative of how we conduct business at Hewlett- Packard. This is an anomaly and I commit to you that it will be fixed. There has never been a time in our history, nor will there be in our future, that issues will not come up. What differentiates Hewlett-Packard from other companies is how we face those issues, and how we deal with them. Let me be very clear: this great company was founded 67 years ago on deep values and beliefs. These are more relevant today than ever before. Our employees and the values we hold are what make HP a special company to do business with and a special place to work. My belief is these values will be strengthened, not diminished as a result of these issues. When you combine these values and the talents of employees within an organization that faces up to its issues we will become a better HP. The board in some way resembles the company months ago. It needs to be worked on. It will become a better board. HP deserves the best board in the world. We will work hard to create a board that all employees can be proud of. I thank you in advance for focusing on our business priorities and serving our customers. Be assured we will do what is needed to move through this and continue our work to build the world s leading information technology company. As I said last week, we have the right strategy, our performance is improving and I believe that s due to the great performance of our people. We must stay focused as a team as we continue to pursue our objectives. 4
5 Thank you very much. 5
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Code of Business Conduct A Message from Our President & CEO Expeditors has had a Code of Business Conduct for many years. While the core Cultural Values embedded in the Code Integrity, Excellence, and
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