HP Inc. (NYSE:HPQ) announced today the expansion of its Board of Directors with the appointment of Fama Francisco as a new independent director, effective immediately. Francisco, currently serving as the CEO of Baby, Feminine and Family Care at Procter & Gamble, brings extensive experience in global consumer brands to the HP board.
Alongside Francisco's appointment, HP's board has also adopted amendments to increase the number of authorized directorships from 12 to 13. This change in the board's composition was made to accommodate the new addition and is effective as of today.
The newly appointed director Francisco will join the Nominating, Governance and Social Responsibility Committee and the HR and Compensation Committee of HP's board. Consistent with the compensation policy for non-employee directors at HP, Francisco will receive an annual cash retainer of $105,000 and an annual equity retainer of $220,000, both prorated for the partial year of service.
HP Inc. has confirmed that there are no undisclosed arrangements or understandings between Francisco and any other persons related to her selection as a director. Furthermore, Francisco does not have any direct or indirect material interest in any transaction that would necessitate disclosure under SEC regulations.
These corporate governance changes are detailed in the company's latest 8-K filing with the Securities and Exchange Commission. The amended and restated bylaws reflecting the increase in the number of directors are included as an exhibit in the 8-K report and have gone into effect today.
The appointment of Francisco aligns with HP's commitment to board independence and governance excellence, as she meets the independence requirements set by the New York Stock Exchange and HP's Corporate Governance Guidelines. The company's expansion of the board aims to enhance its strategic capabilities and oversight as it navigates the evolving landscape of the technology sector.
In other recent news, HP Inc. has seen significant developments. The company announced the appointment of Ma. Fatima (Fama) De Vera Francisco, a seasoned executive from Procter & Gamble, to its Board of Directors. Francisco's broad experience and strong track record are expected to contribute to the advancement of HP's Future Ready strategy.
In legal news, the fraud trial involving Mike Lynch, the British entrepreneur behind Autonomy, a software firm purchased by HP for $11 billion in 2011, is nearing its conclusion. Lynch and former Autonomy finance executive, Stephen Chamberlain, are accused of fraudulent activities that allegedly inflated Autonomy's revenue. A decision on HP's claim of $4 billion in damages is still pending.
On the financial front, HP Inc. reported growth in its PC business for the first time in two years, largely due to robust commercial PC sales. In a recent earnings call, CEO Enrique Lores highlighted the company's fiscal Q2 performance, with a focus on cost reduction and returning all free cash flow to shareholders, equating to roughly $400 million. Despite soft demand in the Print hardware segment, HP Inc. plans aggressive cost cuts and market share gains for the latter half of the year. These are the recent highlights from HP Inc.'s operations.
InvestingPro Insights
With HP Inc. (NYSE:HPQ) bolstering its board's expertise through the appointment of Fama Francisco, investors might be interested in how the company's financial metrics align with these strategic moves. According to real-time data from InvestingPro, HPQ maintains a solid market capitalization of $35.16 billion and stands out with a low P/E ratio of 12.05, indicating potential value for investors considering near-term earnings growth. Additionally, the company's dividend yield of 3.1% underscores its commitment to returning value to shareholders, complemented by a history of raising dividends for 7 consecutive years.
InvestingPro Tips highlight that HPQ has seen 9 analysts revise their earnings upwards for the upcoming period, reflecting a positive outlook on the company's performance. Moreover, the company is recognized as a prominent player in the Technology Hardware, Storage & Peripherals industry, with a strong return over the last month of 14.72%, further solidifying its market position.
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