HP CEO, Mark Hurd resigns following sexual harassment claim

Stuart Corner
Saturday, 07 August 2010 09:48

IT Industry - Market

HP's chairman, CEO and president, Mark Hurd, has resigned after being accused of sexual harassment by a former contractor.

In a statement HP said Hurd's resignation followed "an investigation by outside legal counsel and [HP's] general counsel's office, overseen by the board, of the facts and circumstances surrounding a claim of sexual harassment against Hurd and HP by a former contractor to HP. "

It said that the investigation had "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 realised 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."

Robert Ryan, lead independent director of the board, said: "The board deliberated extensively on this matter. It recognises the considerable value that Mark has contributed to HP over the past five years in establishing us as a leader in the industry.

"He has worked tirelessly to improve the value of HP, and we greatly appreciate his efforts'¦This departure was not related in any way to the company's operational performance or financial condition, both of which remain strong.

CFO Cathie Lesjak, a 24-year veteran of the company, has been appointed interim CEO. She will retain her CFO responsibilities during the interim period.

Lesjak has taken herself out of consideration as the permanent CEO. HP said: "Candidates from both inside and outside the company will be considered. The selection of a new chairman will occur in conjunction with the CEO decision."

HP said it did not expect to make any additional structural changes or executive leadership changes in the near future.

HP also announced preliminary results for the third fiscal quarter 2010, with revenue of approximately $US30.7 billion up 11 percent compared with the prior-year period. HP plans to release its final results for the third fiscal quarter on August 19.