HP CEO Mark Hurd Abruptly Resigns

Posted By: Ryan Kairer Friday, August 6, 2010 2:22:59 PM

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. The Board has appointed CFO Cathie Lesjak, 51, as CEO on an interim basis.

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 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.

Cathie 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. She oversees all company financial matters and will retain her CFO responsibilities during the interim period.

A Search Committee of the Board of Directors has been created, consisting of Marc L. Andreessen, Lawrence T. Babbio, Jr., John H. Hammergren, and Joel Z. Hyatt, which will oversee the process for the identification and selection of a new CEO and Board Chair. HP's lead independent director, Robert Ryan, will continue in that position.

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."

Robert Ryan, lead independent director of the Board, said: "The board deliberated extensively on this matter. It recognizes 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. He is leaving this company in the hands of a very talented team of executives. This departure was not related in any way to the company's operational performance or financial condition, both of which remain strong. The board recognizes that this change in leadership is unexpected news for everyone associated with HP, but we have strong leaders driving our businesses, and strong teams of employees driving performance."

"The scale, global reach, broad portfolio, financial strength and, very importantly, the depth and talent of the HP team are sustainable advantages that uniquely position the company for the future," said Lesjak. "I accept the position of interim CEO with the clear goal to move the company forward in executing HP's strategy for profitable growth. We have strong market momentum and our ability to execute is irrefutable as demonstrated by our Q3 preliminary results."

Lesjak has taken herself out of consideration as the permanent CEO but will serve as interim CEO until the selection process is complete. 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.

The company does not expect to make any additional structural changes or executive leadership changes in the near future.

Source: HP Press Release.

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More Details from CNET

Ryan @ 8/6/2010 3:17:52 PM #

http://news.cnet.com/8301-31021_3-20012944-260.html

RE: More Details from CNET

jca666us @ 8/6/2010 6:04:29 PM #

maybe this bodes well for free porn on the palmpad.

hahaha

RE: More Details from CNET

LiveFaith @ 8/6/2010 8:16:43 PM #

Is Nagle available?
Pat Horne

RE: More Details from CNET

Gekko @ 8/7/2010 5:49:44 AM #

maybe Todd Bradley or Jimmy Swaggart?

RE: More Details from CNET

hkklife @ 8/7/2010 11:01:49 AM #

No, just bring Carly back! She has so much love for HP anyway!

RE: More Details from CNET

richf @ 8/8/2010 3:43:59 PM #

Payday, payday. Settled privately, for how much? Read this baloney here...http://tinyurl.com/293xb4t I have seen several of these cases that eventually turn out to be nothing. This guy didn't even score.
Have a nice day!
Pilot 1000->Pilot 5000->Pilot Pro->IIIe->IIIc->M500->M505->M515->TC->T3->T5->Treo 650P->Treo 700P->Droid>Pre Plus

RE: More Details from CNET

CFreymarc @ 8/8/2010 7:17:33 PM #

There is a huge back story here. High profile sexual harassment suits like this just don't happen.

So with this newly minted CEO out in just under two years, who benefited the most? Ok, the past-her-prime valley girl allegedly with breast implants got a payday from it. But who really cashed in?

Who is the new CEO? What this harassment situation a setup? This valley girl getting other benefits that no one is reporting? Any investigative reporter worth their salt has a nice meaty story that would be great to get out the next HP stockholders meeting. Find out her favorite hotel in Vegas, buy her a few drinks and let the alcohol talk! I bet she is headed there soon.

RE: More Details from CNET

LiveFaith @ 8/9/2010 9:38:09 PM #

CF,

Now that is some good analysis. The kind that the corporate controlled media rarely looks into. The same thing that goes on day after day and year after year in that corporate controlled government that used to be ours.

Ever notice how few of those pervs in DC ever get outed? Whenever they do, (ex."widestance" Larry Craig, Willie Clinton etc.) they get protected by their fellows. Why do the criminal elements (corporate mafia) want them there? They are controllable with simple blackmail. Easy as pie (no pun intended).

Digging below the upper crust usually reveals some interesting things. Corporate media whose paychex come from those with a horse in the race, can never be counted on to do it for us.
Pat Horne

Dude!

CFreymarc @ 8/6/2010 3:32:21 PM #

At your position you should know to have a separate personal account to handle the ladies on the side! You wife and kids taking that much of a tax on your spending you can't take care of your wild oats without dipping into capital? Guess you bit more off of a estate in the Woodside hills than you can handle.

Now the personal fallout. You just quit as CEO of a Fortune 400 company. What your wife going to think of this? Wouldn't be surprised if a few dozen gold-digger divorce lawyers are after your beau now trying to get a percentage of her half she is going to calm under California divorce law.

Silicon Valley fall from grace's hit the bottom hard. You know how to code? You'd make a great consultant!

RE: Dude!

abosco @ 8/7/2010 1:06:13 PM #

Banging the intern has its benefits, though.

RE: Dude!

CFreymarc @ 8/8/2010 7:12:48 PM #

I have to agree. Know plenty of girls that climbed the corporate ladder on their knees and back. It is not as common in high tech but things like construction, manufacturing and -- most definitely -- retail is going along well. Someone said, "A young woman's success in corporate politics inversely proportional to their ratio of their measurements matching 36-24-36 inches."

Oracle Chief Faults H.P. Board for Forcing Hurd Out

Ryan @ 8/9/2010 7:14:27 PM #

http://pfavs.com/g3 (NYTimes.com)

RE: Oracle Chief Faults H.P. Board for Forcing Hurd Out

LiveFaith @ 8/9/2010 10:30:54 PM #

Ryan, I'm sure glad that your hit the "H" in his name instead of slipping up and over a key. That would have made top 10 lists!
Pat Horne

Palm Exodus

mikecane @ 8/10/2010 4:03:29 AM #

The Man Who Designed The Pre Is The Latest To Leave Palm/HP
http://techcrunch.com/2010/08/09/peter-skillman-palm/

Who Is Left At Palm? Hint: Not Execs Katie Mitic Or Jeff Zwerner
http://techcrunch.com/2010/08/09/palm-execs/

Yawn. This is business. The hard truth is, no one is indispensable. Except Steve Jobs. LMAO!

HP insider

mikecane @ 8/10/2010 3:48:01 PM #

Holy mackeral
http://hpphenom.blogspot.com/2010/08/holy-mackeral.html

Hmmm... maybe this accounts for the Palm defections. They knew him as we never did.

RE: HP insider

richf @ 8/10/2010 5:49:29 PM #

Check my earlier posts. I called this guy a clown and pointed out he acted in a way that displayed his lack of integrity. This guy was back stabbing Carly when she was there. I also agree with Ellisons point that all directors that were there for both episodes should get up and leave immediately. This was one wacky board. At one time the college I attended it seemed every computer sci grad wanted to work at HP. People have told me that lately that is not the case. This all ties in with the previously posted articles.
Have a nice day!
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RE: HP insider

Gekko @ 8/10/2010 5:51:48 PM #

he did a great job for shareholders. and that's his #1 job.

http://finance.yahoo.com/echarts?s=HPQ+Interactive#chart1:symbol=hpq;range=5y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

RE: HP insider

abosco @ 8/11/2010 6:26:06 AM #

Be that as it may, I don't understand companies that have a Chairman and CEO combined into one position. The CEO is in charge of management and reports to the board of directors. The Chairman presides over the board. How is this not seen as an immediate conflict of interest?

People should not be trusted to supervise themselves. Split the role back into two separate people, as it was.

RE: HP insider

richf @ 8/11/2010 3:53:10 PM #

The new mba creed is grab all the power you can!!
Have a nice day!
Pilot 1000->Pilot 5000->Pilot Pro->IIIe->IIIc->M500->M505->M515->TC->T3->T5->Treo 650P->Treo 700P->Droid>Pre Plus

Droid X

Gekko @ 8/12/2010 2:15:51 PM #

hkk - so did you get it yet?

Oracle gets Mark Hurd along with a lawsuit from Hewlett Packard

matthewD @ 9/9/2010 8:10:15 PM #

Mark V. Hurd, the previous CEO of Hewlett Packard, resigned amid controversy over sexual harassment allegations concerning a previous consultant, Jodie Fisher. He was recently hired by Oracle as an executive. Oracle is, as fate would have it, a direct competitor with Hp. Hurd accepted a job as co-president of Oracle, however the jump from one giant technology company to another was not that simple. Hurd had to sign confidentiality agreements as part of his employment with HP. As a result, HP is suing Oracle for not legally hiring him. Hurd is a giant among men within the tech industry.