8 March 2006 – New York (NY): Four union pension funds have sued the directors of Hewlett-Packard, alleging that the severance package paid to former CEO Carly Fiorina exceeded the maximum allowed by the company.
The Indiana Electrical Workers Benefit Trust and three funds run by the Service Employees International Union claim Fiorina’s payoff – which the suit estimates at between $21.4 million and $42 million – exceeded a policy which forbade awarding her more than 2.99 times her salary without first seeking shareholder approval.
HP said, in a statement on behalf of its directors, that "HP believes the suit is without merit."
