Mark Hurd has resigned from Hewlett-Packard, sending shock waves through the high-tech industry and pushing the company’s shares down 7.6 percent in early Monday trading. The Chairman, CEO and president of HP stepped down in the wake of allegations of sexual harassment and improper conduct.
Hurd’s forced resignation comes after outside legal counsel and HP’s General Counsel’s Office concluded an investigation into the sexual-harassment claims against him and the company by a former HP contractor. The conclusion: Hurd may not have violated HP’s sexual-harassment policy, but he did violate the company’s standards of business conduct.
Hurd’s Admission
“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,” Hurd said.
“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,” he added. “I want to stress that this in no way reflects on the operating performance or financial integrity of HP.”
A Tumultuous Ship
How will this impact HP? In the short term, Charles King, principal analyst at Pund-IT, expects volatility at the hardware maker’s headquarters. But he doesn’t see HP heading into the rocks despite the captain being hurled overboard in a lifeboat with $12 million and a swift bon voyage.
“The people tending the boilers and working on the bridge are fairly capable of keeping HP on the straight and narrow over the short term,”…