HP CEO Mark Hurd has resigned upon the revelation that he had an inappropriate relationship with a female contractor, plus manipulated expense reports to cover up the affair.
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.”
CFO Cathie Lesjak has been named interim CEO. She has been with the company for 24 years and will retain her duties as CFO during this interim period.
HP’s stock price fell 7.6 percent on Friday at the news of the resignation.
Hurd has been CEO at HP since 2005 and also served as Chairman of the Board since 2006. His severance, according to the Wall Street Journal, will include cash and stock payments of up to US$35 million.
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