HP CEO Resigns After Sexual Harassment Claim
Mark Hurd steps down after sexual harassment claim from female marketing contractor.
HP today announced that Chairman, Chief Executive Officer and President Mark Hurd has decided with the Board of Directors to resign his positions effective immediately.
In his place will be CFO Cathie Lesjak, 51, as CEO on an interim basis. Lesjak is a 24-year veteran of the company who has served as HP’s CFO and as a member of the company’s Executive Council since January 2007.
This surprising shuffle was a result of an investigation of the facts and circumstances surrounding a claim of sexual harassment against Hurd and HP by a former contractor to HP. The investigation determined there was no violation of HP’s sexual harassment policy, but did find violations of HP’s Standards of Business Conduct.
Hurd said: “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.”
“The corporation is exceptionally well positioned strategically,” Hurd continued. “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.”
Engadget live blogged the media call and found that Hurd had submitted inaccurate expense reports to cover up his relationship with a contractor, who worked from fall 2007 to fall 2009. HP declined to give any details on the woman, who chose not to come forward, other than she provided "marketing services."
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I wonder how many millions he will make as a result of agreeing to resign. Oh, and my HP laptop sucked.
What a coincidence. I smell corrupt employee's.
What a *******...don't bang contractors working for your company.
when there's HP, there is way.
IMO HP is a disaster of a company. All the way up to its CEO, apparently. They buy up hundreds of smaller companies, only to lay off the workers and bury the technology. Plus they treat their employees with loads of unpaid overtime, pay cuts, and layoffs. **** HP and their ****** products.
I wonder how many millions he will make as a result of agreeing to resign. Oh, and my HP laptop sucked.
He's getting $40 Million to resign. $40 Million bucks to get fired because you ****** up. The American CEO pay scale is beyond insane.
I guess at HP, they not only their customers, but their contractors too.
According to the figures I read, he will receive $12.2MM. That's still beyond ridiculous. If it were you or I, we'd be fired, walked out with security, sued, and probably have police investigating our activities.
I'm willing to bet the BoD was more pissed that he falsified his expense reports to cover up the relationship, and that's the real reason he's being forced to resign.
So if you're on top you can grab a handful of booty on the way out the door with more reward than consequence.
"Harassment is a funny word... cuz it has ass in it" - Andrew Dice Clay
Well he got paid $12m for banging a contractor, thats just crazy. No wonder the porn industry is raking in billions every year!
What a ********...don't get caught banging contractors working for your company.
FIFY
If there's a lawsuit claiming sexual harrassment but she was all cool with it at the time, then this sounds like extortion.
Squeezing the **** out of the employees makes this man a genius? The books look good but shareholders don't get a waft of company morale. It's a job...for those who can't do better. At least for now.
All this money and unable to pay for a woman...
He really hasn't done much for HP either. I won't compare products to products, the truth is I have had issues with every product that I have serviced from IBM, Dell, Acer, Gateway, HP, Asus, and PC Chips. Hell it keeps me busy. Most of the products that made HP the company that it was are not the products that the general public would buy, servers, 24/7 mission critical non-stop service, high end laser printers and plotters. Mr. Hurd did a lot to streamline a company that needed it after merging with Compaq, after that though he went overboard, buy tech instead of developing with-in and not letting be the innovative company that it could be. Sure stocks go up if they see you’re turning a profit, but that climb isn't anything like what drive innovative companies like Google or what pulled Apple out of its hole. My only hope is that the CEO of HP will look to its best resource, which is people, and allow them to grow.
Sad that he has to resign over this. Isn't the whole reason you climb to the top of a company, and become rich and powerful pretty much just to have the whatever women you want?
Any alpha male always has a woman behind him.
Not sure what to make of this, but for people connecting their products to the CEO - come on. HP laptops are built to a price. What do you expect?
Yeah, to leave that lucrative multimillion dollar pay would have been real painful!
I don't know how these stupid idiots can become CEO. If you want a prostitute, pay for it. There's no such thing as free lunch.
THis idiot pays a premium price for a "free lunch".
Another "Clinton"
HP Sucks !!!!! I hate my laptop !!!!
Just like in Animal Farm "some animals are more equal than others" and in this case it is very true. I HATE the CEO types they are nothing more than human parasites and are more of a drain on society than any welfare program.
He's getting $40 Million to resign. $40 Million bucks to get fired because you ****** up. The American CEO pay scale is beyond insane.
That sort of thing is actually all over jobs. Take administrative teaching jobs. I have a friend who works as Head of School on the international track, and every time he signs a contract (and all administrators do this, it's standard), there's a part that says if he gets fired, he gets a bonus plus continues to get paid the full amount he would have had he actually kept working.
Of course, being fired is a bad mark on your record (though, judging by what he says, it's not really that bad, often administrators just don't 'click' with a school and get fired by the board), but you get more money than you would had you left. In this instance, it's not an American system either.
I still want to know who this contractor was.
Holy Harrassment!
This takes the cake. He tried to have his cake, and eat it too...
Sad that he has to resign over this. Isn't the whole reason you climb to the top of a company, and become rich and powerful pretty much just to have the whatever women you want?
I would infer that the woman was only in it for the money. Aside from that, I see what you're saying; but apparently he wasn't rich and/or powerful enough, to get off the hook completely.
hurd: "dammit, i knew we should have locked the trunk before pushing her into the river..."
He can plead "Insanity" - he can say that he was crazy about that girl!
Sounds like 'something' happened, and the board would rather have him resign than drag this through the press more...
but, since we will never know the actual facts - he could be innocent or a dirtbag.
Another scum bag with money who refuses to try and "figure it out(life)" instead he acts like any run of the mill office d-bag. Everyone knows you don't dip your pen in company ink, plenty of other 20 somethings his company doesn't employ that would give him a "job".