HPQ: Ray Lane to Yield Chair Role to Whitworth, Citing ‘Distraction’

Hewlett-Packard (HPQ)�executive chairman Ray Lane will step down as chair, while remaining on the board, and Ralph Whitworth of Relational Investors, already on the board, will step into the role of chair, according to a report this afternoon by The Wall Street Journal‘s Joann Lublin, which was echoed by CNBC‘s David Faber just after the closing bell, citing multiple unnamed sources.

Faber said Whitworth’s appointment is expected to be temporary while a permanent chair is sought.

HP shares are down 9 cents at $22.21 in late trading. Former IDC hardware research analyst Roger Kay told CNBC “this looks to me a minor adjustment. When you have a big ship like HP, you don’t want to just yank the steering wheel. The ship is moving in the right direction, and Meg [Whitman, CEO] is firmly at the helm.”

Update: HP this evening confirmed the change, announcing Lane will give up the chair role and maintain his board seat, “�to be replaced on an interim basis by Ralph V. Whitworth.”

“The board is commencing a search for a permanent nonexecutive board chairman.”

Said Lane,

After reflecting on the stockholder vote last month, I’ve decided to step down as executive chairman to reduce any distraction from HP’s ongoing turnaround. Since I joined HP’s board a little over two years ago, I’ve been committed to board evolution to ensure our turnaround and future success. I’m proud of the board we’ve built and the progress we’ve made to date in restoring the company. I will continue to serve HP as a director and help finish the job.

HP said directors John Hammergren and Kennedy Thompson will also step down following a May board meeting.

Shares are down 20 cents, or 0.9%, at $22.10.

Update: In a statement this afternoon, New York City comptroller John Liu, who had campaigned against Hammergren and Thompson in advance of last month’s shareholder meeting, cheered the changes:

HP�s board got the message. It has removed the two directors most responsible for a series of value-destroying oversight failures, and established fresh, independent leadership. This a good day for HP, its board, and its shareowners.