HP boss resigns after sexual harassment scandal

Released 09/08/2010

Stocks in IT giant plummet

The chairman, CEO and president of HP, Mark Hurd, has resigned in response to "inaccurate expense reports" discovered as a result of investigations into allegations of sexual harassment.

Hurd's decision was made following an investigation by outside legal counsel and the General Counsel's Office, overseen by the Board, of the facts and circumstances surrounding a claim of sexual harassment against Hurd and HP by Jodie Fisher, an actress famous for starring in a selection of adult titles and, at the time of the alleged impropriety, a contractor for HP's marketing division.

The investigation determined there was no violation of HP's sexual harassment policy, but did find violations of HP's Standards of Business Conduct.

Engadget has reported these violations of business conduct were "inaccurate expense reports" discovered as a result of investigations into the claims.

The HP board has appointed CFO Cathie Lesjak as CEO on an interim basis. A Search Committee of the Board of Directors has been created to oversee the process for the identification and selection of a new CEO and board chair.

Hurd commented: "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."

Business Insider has reported that shares in the company fell 10% as a result of Hurd's resignation in after-hours trading on Friday.

Additional sources: bit-tech.net

Return to news

Discuss this in our forum