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
The company announced today that Hurd
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
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
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
For his part in this whole matter, Mark
Hurd had this to say:
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.
quote: An Indonesian man told me many times that women will ruin your life.
quote: Further statements from HP show that the contractor in question provided services for HP between 2007 and 2009.
quote: Overall, this was handled properly, IMO.
quote: I would think the money was a settlement to avoid negative pr and an unproductive HP as the result of a full blown investigation. In the end, everyone won...HP avoided bad publicity, CEO gets payout, and the accuser gets the harrassment to stop.
quote: He resigns over allegations of sexual harassment and misconduct, but still gets $40-$50 million ?
quote: I'm glad that I'm not the only one that things reclaimer is a troll.
quote: No doubt Reclaimer77 will spin this as one of those positive aspects of capitalism.
quote: But let HP, a private company, give a resigning CEO some money
quote: There are people making more money than you who probably don't "deserve" it. I'm sorry.
quote: And if you think this guy deserved what he got
quote: What makes you think that HP stock owners got to vote on the bonus? And do you really believe they wanted it?