Business and pleasure don't mix; HP CEO Mark Hurd resigns

Although faring better than expected financially this quarter, HP is experiencing more leadership difficulties. CFO Cathie Lesjack has assumed the position of Interim CEO of the company amid former CEO Mark Hurd's sexual harassment allegations and subsequent resignation.

Although the investigation is in its final stages and Hurd was cleared of any sexual wrongdoing, he has decided to resign on the grounds of not "live[ing] up to the standards and principles of trust, respect and integrity that I have espoused at HP and which have guided me throughout my [his] career." The former CEO has been found in violation of company "Standards of Business Conduct" due to his altercation with a former contractor.

Engadget, who was part of the media call, was privy to some more details relating to this developing story. Apparently while personally involved with a contractor, multiple instances of reimbursement not related to HP business interests has been discovered. This combined with falsified expense reports covering up this apparent relationship has resulted in Hurd's departure.

Although stepping aside, Hurd has stated that "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," and that "the corporation is exceptionally well positioned strategically. 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."

Interim CEO, Lesjack, has stated that she is not considering a permanent promotion, and is only filling the current need while the board begins its hunt for a new CEO and also consequently, chairman.

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16 Comments

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HP sucks and when someone is let go they should get a slap on the wrist and warning letter so if someone were to hire him the company should be warned about him as he could cause problems. them getting money is just telling them that it is ok to screw up as you get a large sum of cash and shares worth alot=that should stop. they should get nothing.

this doesn't surprise me at all. hp makes decent brands but the customer service & warranty sucks eggs. sorta pointless for them to buy palm too considering they have yet to release one product with webos on it, what a waste. i still wish htc would of bought palm out.

Let's look at successful CEOs (as a whole); most, if not all, of them would *not* pass the political-correctness test that seems to be a major requirement for the public face of a company (especially a major public company). Carly Fiorina and Mark Hurd (both of HP) are symptoms, not the cause. The same could easily have been said (in fact, it WAS said) of Bill Gates and Steve Ballmer (both of Microsoft) the Steves (Jobs and Wozniak) at Apple, and even Sir Richard Branson (the Virgin Group). "People persons" they aren't. However, if you look at truly *successful* CEOs of major companies, they usually aren't great "people persons".

Maybe it's time that the "public face" of a company (especially a public company) should go back to the board chair (where it truly belongs); the CEO (by responsibility) is supposed to handle daily operations (basically the S-3) and is therefore too busy to handle PR flackery. (That is precisely why I was rather horked off with Congress for dragging BP's CEO up to the Hill to testify; however, I was just as horked off with BP, which knew better, but let Congress bully them into first sending him, then firing him for doing something that he had no business doing anyway. Congress dragged the folks from BP *not* to necessarily do ANYTHING about the spill; what BP could do, both in terms of responsibility and under the law, it was doing! It dragged them up there as a move to be seen as *doing something*, just like most Congressional inquiries and investigatory hearings, and especially those in front of cameras, even if just the cameras of C-SPAN.)

Basically Mark Hurd had to go for the same reason Carly Fiorina had to go; to save face.

Sexual harrassment that doesn't involve sexual harrassment? I bet these guys were on high when they were inventing an excuse to kick out the CEO.

I wonder how many people actually believe that a CEO of a company with 100bln revenue can be fired due to "non-accurate expense claims". Ha-ha.

lexp said,
Sexual harrassment that doesn't involve sexual harrassment? I bet these guys were on high when they were inventing an excuse to kick out the CEO.

I wonder how many people actually believe that a CEO of a company with 100bln revenue can be fired due to "non-accurate expense claims". Ha-ha.

Reading helps...

"The former CEO has been found in violation of company "Standards of Business Conduct" due to his altercation with a former contractor."

He was doing business with someone he should not have been.

HP really has CEO trouble. Fiorina was kicked out like 5 years ago, now this guy? Wondering who will replace him. Maybe Steve Jobs? (just pulling your leg)