A year ago former CEO of HP sold $30 million of his shares in the maker of printer ink, HP.
At the time we pointed out that Mark Hurd might know something we didn’t about the future of the outfit, although we thought he might need the cash to start a new business.
Hurd ditched his 775,000 common shares a few weeks after leaving HP. With HP trading at $39.04 that day, the sale would have raised $30.3 million.
However if he tried the same stunt today the share price would be at $24.82 which means that he would have made only $19 million.
Ray Lane, non-executive chairman at HP, attacked In former CEO Mark Hurd’s austerity and profit-driven management style. He claimed that it harmed HP’s ability to innovate which put it in the mess it is in now.
But when the board leaned on Hurd to quit, for wining and dining former soft porn stars on expenses, HP was in better shape than it is now. The moment he left, share prices in the outfit started to slide. It would appear that Hurd, rather than betraying the company he had just left, saw the monkeys had taken over from the organ grinder and, like any other shareholder, bailed out rather than losing money.
We have not heard if Hurd has any more stake left in HP. He was allowed to buy what would have been another $30.3 million in September. If these figures are right, he would have been better off putting the whole lot on a horse.