The 10 Most Controversial Companies Of 2019
Whether it was a security vendor hit by hackers, whistleblower accusations of hiding damaging figures or a major channel policy change that raised the ire of partners, 2019 was a year filled with controversial companies. Here’s our list of the top 10 most controversial.
1. DXC Technology
A new CEO, plans to unload businesses and lawsuits with wild accusations. That’s the kind of headlines that made systems integration giant DXC Technology the No. 1 most controversial company in 2019.
In November, new CEO Mike Salvino told investors during his first quarterly earnings call that the Tysons, Va., company was looking at divesting three businesses as part of a plan to restore growth.
The three businesses Salvino is looking to unload: U.S., state, and local health and human services business; its horizontal business process services business; and its workplace and mobility business. Those three businesses account for about 25 percent of annual sales.
DXC also grappled with major lawsuits in 2019 including a federal civil lawsuit that alleged that an ex-general manager of DXC carried out a fraud scheme in which he put friends and family on the payroll, then submitted “fabricated” time sheets and expenses, according to the lawsuit. The DXC account manager has denied the charges.
The accusations are included in a suit filed in October by Atlas Communications Inc., a Plainsboro, N.J.-based staffing service provider, in U.S. District Court in New Jersey. A lawyer representing Atlas declined to answer questions about the accusations, telling CRN that “the suit speaks for itself.”
If that wasn’t enough, former DXC Executive Vice President, Head of Global Delivery Stephen Hilton, who was oversaw a $14 billion business with 120,000 employees, accused Lawrie of possessing a “toxic” management style that valued obedience above honest feedback, and of having no boundaries between personal and professional roles.
In its response, DXC denied Hilton’s claims about the “toxic” style, as well as that Lawrie had changed the vesting dates of Hilton’s stock “without legal authority.”
After months of back and forth, DXC and Hilton agreed to dismiss the suit in July, with each side opting to pay its own legal fees and court costs, a sign that typically means the parties have settled out of court.