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H-P Stock Rebounds After CEO Resigns

H-P stock has rebounded by about 2.1% to $42.74 after a tumble in shares following the announcement that chief executive Mark Hurd was stepping down after actress Jodie Fisher alleged that he had sexually harassed her.
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NEW YORK (TheStreet) -- H-P (HPQ) - Get Report stock has rebounded by about 2.1% to $42.74 after shares tumbled over the weekend on the announcement that chief executive Mark Hurd was stepping down after actress Jodie Fisher alleged that he had sexually harassed her.

Shares of the H-P stock had dropped by more than 7% to $42.81 Monday after recovering later in the morning. They have fallen by more than 17% year to date.

H-P CEO Mark Hurd Resigns

Hurd's resignation was announced on Friday. On the same day, an H-P filing with the SEC stated that Hurd's severance package would include the following:

Severance payment of about $12.2 million.

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An extension until September 7, 2010, of the expiration date of his outstanding options to purchase up to 775,000 shares of H-P common stock that were vested as of the date of his resignation

330,177 performance-based restricted stock units granted to Hurd in January 17, 2008 based on H-P performance during the three-year performance period ended October 31, 2010.

Settlement on December 11, 2010, of 15,853 time-based restricted stock units granted to Hurd on December 11, 2009, at a price equal to the lesser of the closing price of H-P's common stock on August 6, 2010, or the per share closing trading price of H-P common stock on December 11, 2010.

Eligibility to receive H-P's continued group medical and dental coverage through the Consolidated Omnibus Budget Reconciliation Act of 1995 for up to 18 months.

The severance package is estimated to be worth more than $35 million.

Fisher, who was a salesperson and has been in films and TV shows, including NBC's "Age of Love," said over the weekend that she never meant for her sexual harassment allegation against Hurd to lead to his forced resignation.

"I was surprised and saddened that Mark Hurd lost his job over this," she said in a statement released by celebrity attorney Gloria Allred. "That was never my intention."

Former actress Jodie Fisher 50

"Mark and I never had an affair or intimate sexual relationship. I first met Mark in 2007 when I interviewed for a contractor job at the company.""At H-P, I was under contract to work at high-level customer and executive summit events held around the country and abroad. I prepared for those events, worked very hard and enjoyed working for H-P. I have resolved my claim with Mark privately, without litigation, and I do not intend to comment on it further."

Currently Catherine Lesjak, H-P's executive vice president and CFO, is serving as H-P's interim CEO.

H-P Raises Guidance as CEO Resigns

Click here for more on H-P CEO Mark Hurd's resignation

-- Reported by Andrea Tse in New York

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