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HP CEO Mark Hurd Resigns and Liveblog of HP’s Media Call

Written by: on 10th August 2010 |
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HP CEO Mark Hurd Resigns and Liveblog of HP's Media Call  | read this item

HP CEO Mark Hurd Resigns and Liveblog of HP’s Media Call – The news of the resignation of HP CEO mArk Hurd reverberates across the information technology sector worldwide. Hurd had been regarded as one of the more innovative management members of HP and it seems that investors and clients are worried of this sudden change in HP.

“Mark Hurd was a “strong leader, at the end of the day, he didn’t drive our initiatives — it was the organization that supported Mark in driving those initiatives,” says interim HP CEO Cathie Lesjak.

The sexual harassment allegations rooted from a close personal relationship established and maintained by Hurd with a contractor who was hired by his office and the numerous reimbursements that were made beyond the allowed expenses.

An attorney for the woman making the sexual harassment charges meanwhile clarifies that her client never informed here that she and Mark Hurd has any romantic or sexual relationship.

The investigation of HP over the sexual harassments claim of the contractor began June 29. The investigation found that Hurd violated HP’s standard of business conduct but it didn’t find violations of the harassment policy.

To shed more light on this issue here is a Liveblog of HP’s Media Call earlier today courtesy of ENGADGET.

3:22PM We’re on the call now — HP is saying that Mark Hurd had a close personal relationship with a contractor who was hired by the office of the CEO, and there were numerous instances of reimbursement where there was not a legitimate business interest for HP. Mark also submitted inaccurate expense reports to conceal his relationship with the contractor, and that violated HP’s standards of business conduct.

3:22PM Interim CEO Cathie Lesjak on the line — she’s told the board that she doesn’t want to be considered in the CEO search, but she says she’s “never been more confident” in HP’s future.

3:23PM “My principal priority as interim CEO is to continue our path that is giving us market momentum as we conduct the search for a new CEO.”

3:24PM It’s Q/A time — this should be interesting.

3:25PM First question, from ABC News: “Can you tell us the amount of money involved in these inaccurate expense reports?” HP: We’re not going to get into details, but there were numerous instances, and the issue was integrity at the highest levels. The amount is not the issue from the board’s perspective.

3:26PM Next question, from NYT: “Can you explain the nature of the contractor and the circumstances of what happened here?” HP: This was a marketing contractor who worked from fall of 2007 through the fall of 2009 — she was never an HP employee. Not getting into her age or description — she’s chosen not to come forward.

3:27PM Bloomberg: How did this come to the board’s attention, and how was it dealt with? HP: The contractor’s attorney sent us a letter, and the investigation began the next day.

3:28PM Dow Jones: Did Mr. Hurd provide payments to the contractor, or was this a matter of dinners and hotels? HP: We’re not going to talk about Mr. Hurd, but HP paid the contractor’s fees for services and her expenses — there was a question about whether her services were actually provided.

3:29PM Financial Times: What were the services? HP: Marketing services.

3:29PM Investors Business Daily: How is the CEO search process going to play out, and what’s the timeline? HP: The search committee is moving as quickly as they can.

3:30PM Reuters: You raised your guidance for the year — what gives you that confidence? HP: We raised our guidance because of strong business performance.

3:31PM HP: Mark Hurd resigning has nothing to do with the operational performance of HP — it has everything to do with his actions and integrity.

3:32PM Next question (from us!): Will Jon Rubinstein be considered for the CEO position? HP: We’re not identifying any candidates at this time.

3:32PM PC Mag: Any litigation here? HP: Nothing has been filed, we have an agreement with Mark in place.

3:32PM And that’s it! There’s an investor call coming up, we’ll let you know if we hear anything there.

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  1. strelaoz says:

    HP has a much higher standard on ethics & integrity than Symantec. Sign…

    As I have reported to Symantec Ethics about David Freer’s (VP, Symantec – Norton, APJ) misconducts (fraud, having dissented sex with me as he lied, using company resources for personal benefits – hundreds hours phone calls, hanging out with me during office hours, negative impacts on Symantec corporate image), what they do surprise me too. They basically ignore – never process the investigation, covering the serial lying & cheating criminal up, then threaten me. As Warren Buffet said when he decides which company is worth to invest, he values the CEO’s ethic and integrity the most. Being a senior management, David Freer shall walk the talks, instead he has set up a terrible example. How dare Symantec always campaign the company itself as defeat cyber criminals, but in the real world, Symantec acts just like robbers, mafia, & criminals. How ironic!