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Former HP CEO Mark Hurd  (Source: Getty Images)
Mark Hurd appears to have been a bit too generous with HP's cash for personal use

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.

 





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