This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

H-P CEO Mark Hurd Resigns

H-P/Hurd story updated with comments from H-P's board and interim CEO Cathie Lesjak.

PALO ALTO, Calif. (TheStreet) -- Hewlett-Packard (HPQ) CEO Mark Hurd has resigned in a shock move, following an investigation into an accusation of sexual harassment.

In a statement, H-P explained that Hurd's decision was made following an investigation by outside legal counsel and the General Counsel's Office, overseen by the Board. This was related to a claim of sexual harassment against Hurd and H-P by a former contractor to H-P, it said.

"The investigation determined there was no violation of H-P's sexual harassment policy, but did find violations of H-P's standards of business conduct," explained H-P.

Mark Hurd
H-P CEO, Mark Hurd

"Mark had a close personal relationship with an H-P contractor that was hired by the office of the CEO," said Mike Holston, H-P's General Counsel, on a last-minute investor call Friday afternoon. "Mark's conduct displayed a profound lack of judgement ... based on all [we turned up], the board concluded -- and Mark agreed -- that it would be impossible for him to be an effective leader anymore."

Holston explained that H-P had unearthed irregularities in payments made to the contractor, as well as Hurd's expense reports. "It was a systematic pattern of improper expenses and inaccurate reports," he said.

Hurd, who took the helm at H-P following the departure of his controversial predecessor, Carly Fiorina, is credited with turning the tech giant's fortunes around.

Cathie Lesjak, H-P's CFO, will now serve as the company's interim CEO, but ruled herself out of consideration for the permanent CEO's role. "Fundamentally, our strategy isn't changing at H-P," Lesjak said during the call. "I can assure you that as interim CEO, my sole focus will be keeping this great company focused on our its executive strategy."

Cathie-Lesjak
Cathie Lesjak, H-P's interim CEO.

Hurd issued the following statement on his decision to resign:

"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 H-P 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 H-P, but I believe it would be difficult for me to continue as an effective leader at H-P 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 H-P."

-- Reported by James Rogers in New York

Follow James Rogers on Twitter.

Stock quotes in this article: HPQ 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs