HP CEO Resigns After Sexual Harassment Claim

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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  • husker
    I wonder how many millions he will make as a result of agreeing to resign. Oh, and my HP laptop sucked.
  • ta152h
    I guess at HP, they not only their customers, but their contractors too.
  • wotan31
    huskerI 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.
  • Other Comments
  • husker
    I wonder how many millions he will make as a result of agreeing to resign. Oh, and my HP laptop sucked.
  • mlopinto2k1
    What a coincidence. I smell corrupt employee's.
  • Fetal
    when there's HP, there is way.