The union pension funds filed a lawsuit in U.S. District Court in San Jose against CEO Carly Fiorina and Hewlett Packard (HP). The suit alleges HP made false and misleading disclosures in its proxy statements about severance plans adopted by its board and that it breached its severance policy and fiduciary duties when it did not seek shareholder approval for Fiorina's severance package.
The suit also claims Fiorina's departure package violated the long-term performance compensation plan, which was a three-year plan. The suit alleges payments were not designed to be made prior to the expiration of the plan.
The group of unions includes the Indiana Electrical Workers Pension Trust Fund, International Brotherhood of Electrical Workers, Service Employees International Union (SEIU) Affiliates' Officers and Employees Pension Plan, SEIU National Industry Pension Fund, and Pension Plan for Employees of SEIU.
