When politicians have bad news to dish
out regarding a scandal or some sort of investigation, they tend to
wait until Friday to announce the news -- if the media doesn't catch
wind of it sooner -- hoping that it will get lost in the media
wasteland known as the weekend. Today, there's some troubling news
coming out of Hewlett Packard front that involves [former] CEO Mark
Hurd.
The company announced today that Hurd
tendered
his resignation as a result of an investigation regarding claims of
sexual harassment from a former female HP marketing contractor. Although
the investigation found no evidence of sexual harassment, there was
enough dirt found to show that Hurd violated HP's Standards of
Business Conduct.
According to Engadget,
Hurd "submitted inaccurate expense reports to conceal his
relationship with the contractor, and that violated HP's standards of
business conduct." Further statements from HP show that the
contractor in question provided services for HP between 2007 and
2009.
In the mean time, current HP CFO Cathie
Lesjak, 51, will take on the role as interim CEO. She has stated,
however, that she is not prepared to take on the role of CEO
full-time, but will stay on as the search for a new CEO gets
underway.
For his part in this whole matter, Mark
Hurd had this to say:
As the
investigation progressed, I realized there were instances in which I
did not live up to the standards and principles of trust, respect and
integrity that I have espoused at HP and which have guided me
throughout my career. After a number of discussions with members of
the board, I will move aside and the board will search for new
leadership. This is a painful decision for me to make after five
years at HP, but I believe it would be difficult for me to continue
as an effective leader at HP and I believe this is the only decision
the board and I could make at this time. I want to stress that this
in no way reflects on the operating performance or financial
integrity of HP.
Hurd concluded by stating, “HP has an
extremely talented executive team supported by a dedicated and
customer focused work force. I expect that the company will continue
to be successful in the future.”
The news of Hurd's departure sent HP's
stock down nearly
10 percent in after hours trading. Also, according to Silicon
Alley Insider, Hurd will receive
a $40 to $50 million severance package.
