Mark Hurd resigned as HP’s Chief Exec

Mark Hurd, CEO and Chairman of Hewlett-Packard Co. for more than five years, resigned from his post after a sexual harassment case was filed against him and the company. The complainant was a female marketing contractor who worked for HP for two years.

HP didn’t find enough evidence that will support the sexual harassment case. However, they found out that he deliberately filed erroneous expense account reports on many occasions in an attempt to hide his personal relation with the said contractor, reports CNNMoney. The board believed that Mark Hurd has violated the company’s business conduct policy, which makes him no longer suitable to lead HP and uphold its values.

Mark Hurd, in his statement released by the company, agreed with the decision and said, "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."

He added that it, “… 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."

Mark Hurd joined HP as president in 2005 and many regarded him as the savior of the company, who breathed life back into its dwindling economic status. HP was able to regain the top spot in computer tech market, which Dell Inc. took from them, and doubled its stock-market value under his watch.

With Mark Hurd’s departure, Chief Financial Officer Cathie Lesjak, who’s been with HP for 24 years, will lead the company as its interim CEO. A committee, tasked to select HP’s next president and chairman of the board, was also created. Members of the committee include Andreessen, Lawrence T. Babbio, Jr., John H. Hammergren, and Joel Z. Hyatt, according to an article in the Austin Business Journal.

Mark Hurd already walked away with $12.2 million as a severance payment but he could still collect up to $53 million in stock and restricted units under his separation plan with the company, told CNN Money.

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