Friday, August 6, 2010

HP CEO Mark Hurd Resigns Amid Allegation of Improper Transactions with a HP Subcontractor

HP's shares were down 10% in after-hour trading. It looks like an HP contractor alleged "sexual harrassment" when her relationship with Hurd ended and no more money coming her way...

HP CEO Mark Hurd Resigns Amidst Sexual Harassment Investigation
(8/6/2010 GISMODO)

"HP CEO Mark Hurd has resigned over a sexual harassment allegation leveled by a former HP contractor. The company says an investigation by outside counsel found no sexual harassment violation, though there were violations of HP's Standards of Business Conduct. Updated

"The news comes by way of a press release just issued by the company. CFO Cathie Lesjak will serve as interim CEO while the Board of Directors searches for a new head. Shocking stuff (that naturally gets slipped in last thing Friday afternoon.) [BusinessWire]

"Update: Engadget hopped on the media call following the press release, which cleared things up a bit. HP's saying that Hurd "submitted inaccurate expense reports to conceal his relationship with the contractor, and that violated HP's standards of business conduct." There were apparently "numerous instances" and "HP paid the contractor's fees for services and her expenses [though] there was a question about whether her services were actually provided."

"Update 2: HP's stock is down 10% in after hours trading, according to SAI.

"Update 3: Apparently Hurd is receiving a generous $12 million severance package to ease the pain of this resignation. [SEC via Engadget]"

And here are select comments at GISMODO:

"Had only Hurd merely screwed the company over like Carly Fiorina did, he'd be a Senatorial candidate for California in four years."

"This confirms it: Billionaires are cheap people. I can't believe he used the company money to pay for their dates and what not."

"Is it me, or is everyone wondering what the services were?

Chutzpah of the ruling class...


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