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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."

  • husker
    I wonder how many millions he will make as a result of agreeing to resign. Oh, and my HP laptop sucked.
    Reply
  • mlopinto2k1
    What a coincidence. I smell corrupt employee's.
    Reply
  • Fetal
    when there's HP, there is way.
    Reply
  • wotan31
    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.
    Reply
  • 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.
    Reply
  • ta152h
    I guess at HP, they not only their customers, but their contractors too.
    Reply
  • tsnorquist
    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.
    Reply
  • thejerk
    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.
    Reply
  • shloader
    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
    Reply
  • liquidsnake718
    Well he got paid $12m for banging a contractor, thats just crazy. No wonder the porn industry is raking in billions every year!
    Reply