Daily Archives: September 6, 2006

HP’s board under the microscope

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HP logo.JPGThe Wall Street Journal’s Alan Murray reports in this article ($) (related NYT article here and Newsweek article here) about the internal investigation that ensued of the Hewlett-Packard board of directors after former HP CEO Carly Fiorina (previous posts here) was forced out early last year. The subject of the investigation was the leaking of confidential information to a Wall Street Journal reporter regarding board deliberations and ultimately led to the resignation of one board member — venture capitalist Tom Perkins — and the board’s decision not to nominate a second board member — George Keyworth, the alleged leaker — for another term on the company’s board.
The article is interesting and all, and certainly maintaining the confidentiality of board deliberations is important. However, if I were an HP investor, I would feel a whole lot better about the company if I was not left with the impression that the company’s board members behaved in a manner not quite as mature as my 16 year-old daughter’s social circle of friends.
Update: Professor Bainbridge predicts that HP’s directors are not going to react kindly in regard to the way in which the HP board chairperson handled the investigation, and Larry Ribstein is about as impressed with the HP’s corporate governance as I am.

McClain leads more cheerleading for the Texans

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Ron dayne_ron_mug.jpgAs noted earlier here and here earlier, even his hyprocrisy in turning on the Texans during their disastrous 2005 season after predicting in the pre-season that the team was a playoff contender does not deter Chronicle NFL sportswriter John McClain from engaging in more cheerleading for the Texans with this puff-piece regarding the team’s recent acquisition of journeyman running back, Ron Dayne (for a positive, but more realistic, view of Dayne, see John Lopez’s column here). The article even includes a chart noting that Dayne is the fifth Heisman Trophy winning running back to have played for a Houston professional football team, the others being former Oilers Billy Cannon, Earl Campbell, Mike Rozier and Eddie George.
Not mentioned in McClain’s article is that Dayne is overweight and slow, and is unlikely to have any meaningful impact on the Texans’ performance this season. Football Prospectus, which uses objective criteria to rank Dayne as a below-NFL average running back for his career, observes that “Dayne’s problem has always been finding the hole to run through. You literally have to stick the hole in front of him, slap him across the face, point, and yell ‘HOLE!'”
Now, this all may work out just fine for the Texans, but don’t you think that such a counter-analysis of Dayne might creep into at least a part of an article by the Chronicle’s lead NFL writer? Stay tuned for my pre-season evaluation of the Texans coming this Friday.

Prosecution Continues Bidding in the Olis Sentencing Case

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Let’s see here.

First, the Justice Department misleads U.S. District Judge Sim Lake in regard to the true amount of the market loss resulting from the transaction that forms the basis of former mid-level executive Jamie Olis’ conviction, which in turn resulted in the imposition of an over-the-top 24+ year sentence.

Then, after the Fifth Circuit reversed that abomination, the prosecution — while dragging its feet in regard to the re-sentencing of Olis — recommended to Judge Lake in December of last year that the Olis should be re-sentenced to “only” 15 years in the slammer.

Now, after U.S. District Judge Jed Rakoff provided a much-needed dose of sanity in regard to sentencing of business executives and Stanford University law professor Joseph Grundfest eviscerated the Olis prosecution’s market loss arguments, the Chronicle’s Tom Fowler reports that the Olis prosecution is now contending that Olis should be re-sentenced to “only” 12 1/2 years.

At this rate, I figure the prosecution will finally reduce their demands for the length of Olis’ sentence to an appropriate level by, say, 2009 or so.

The hearing on the market loss issue in the Olis case is scheduled for next Tuesday.

Inasmuch as it is going on 11 months since the Fifth Circuit reversed Olis’ original sentence, Judge Lake will likely re-sentence Olis shortly after Tuesday’s hearing.