Ralph Whitworth, co-founder of Relational Investors LLC and an activist shareholder, has been appointed to HP's board of directors. Whitworth desires to focus on improvement of discipline in HP's spending and very specifically in the acquisition area, reported a trusted source.
At present Relational has one percent stake in HP and while accepting the seat in the board, Relational agreed not to merge, sell or perform any other similar transaction involving HP as mentioned in Thursday's regulatory filing. If the stake falls below 0.5 percent the deal will be void and Whitworth must resign from the board of HP states the filing reported The Wall Street Journal.
On Thursday, executive chairman of HP, Ray Lane, said that Whitworth "will bring a constructive voice and a track record of value creation into the boardroom."
Ralph Whitworth, a veteran activist has very good experience as a member of many corporate boards. David Larcker, an accounts professor at University of Stanford, commented about Whitworth that he is not popular "for going along with status quo" and likely to be "a pretty active and aggressive player in vetting new people and strategies" Wall Street Journal reported.