13
December
2006
|
08:28 AM
America/Los_Angeles

Hurd asked to explain option sales

Mark Hurd exercised $1.37 million in options less than two weeks before HP disclosed its spying tactics in a SEC filing and congressional investigators want to know why. The sale does not appear to be part of a prescheduled program, AP reports. Indeed, seven other executives cashed out during that period, part of a three-week window where option holders are allowed to exercise their options.


The congressmen asked Hurd to explain the reason for the transaction, seeking an answer on "whether executives are cashing in ('bullet dodging') while in possession of potentially damaging material facts that shareholders do not know."

Dingell and Stupak also asked in the letter to "please inform us whether any other HP officers or directors engaged in similar transactions during this period."