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“The shocking announcement from the world’s top personal computer maker sent its shares plunging 10 percent, as Hurd is one of the most admired executives in Silicon Valley, credited with reviving HP after the tumultuous reign of Carly Fiorina,” Madway and Oreskovic report. “The unnamed contractor, who did marketing for HP from late 2007 to fall 2009, contacted the firm’s board in June this year and alleged that Hurd had sexually harassed her, HP said.”
“The board ordered an investigation and found that the married 53-year-old Hurd did not violate HP’s sexual harassment policy. But he had a ‘close personal relationship’ with the woman that was never disclosed to the board, HP said,” Madway and Oreskovic report. “‘The board investigation found that Mark demonstrated a profound lack of judgment that seriously undermined his credibility and damaged his effectiveness in leading HP and Mark agreed,’ HP General Counsel Mike Holston said, adding that the board’s decision to replace Hurd was unanimous.”
“According to HP, Hurd filed ‘numerous inaccurate expense reports’ that concealed his relationship with the contractor, who also received compensation and expense reimbursements without legitimate business reasons,” Madway and Oreskovic report. “Hurd, who was also chairman of HP and had a reputation for rigid cost discipline, said the decision to step aside was a ‘painful’ one.”
“A source familiar with Hurd’s account of the situation described his relationship with the contractor as ‘business acquaintances’ who had dined together about a dozen times. The source said the expense issues stretched over two years, were related to travel, meals and lodging, and totaled up to $20,000,” Madway and Oreskovic report. “Another source familiar with the situation described the woman as a ‘low-level contractor’ who would assist at marketing events.”
“Hurd was known as a serial acquirer, unafraid of making bold moves to take on competitors like IBM, Apple Inc and Research in Motion,” Madway and Oreskovic report. “‘Mark Hurd was extremely instrumental in turning this company around,’ said Susquehanna Financial Group analyst Jeffrey Fidacaro. ‘There’s going to be a serious gap in leadership at the top of this company.'”
Madway and Oreskovic report, “Hurd will be well compensated as he departs HP, receiving a severance payment of $12.2 million. His 2009 total compensation was $30.3 million, according to a filing. His total compensation in the last three years was about $97.8 million. HP said its board of directors has formed a search committee to find a new chief executive and board chair.”
Read more in the full article, in which Gloria Allred, who is (of course) representing the woman who made the sexual harassment claim, says her client did not have sex with Hurd, here.
MacDailyNews Take: Made $30.3 million, but fraudulently expensed “up to $20 thousand.” Stupid. Cheap. Loser. Adidos, Markie!
So, what do you think, skip the book and wait for the movie?