Mark Hurd, chief executive officer and chairman for HP, has resigned after investigations on allegations of sexual harassment.
The decision was made by Mark Hurd and HP’s board of directors after a sexual harassment claim, made by a former marketing contractor, was made against HP and Hurd.
While he wasn’t breaking the HP sexual harassment policy, Hurd submitted expense reports that covered the relationship up and he also violated HP’s Standards of Business Conduct.
According to Engadget, Hurd received a severance pay of $12,224,693 for agreeing not to sue HP, as well as $40 – $50 million severance in stocks according to CNBC. The role of CEO is being temporarily taken over by chief financial officer Cathie Lesjak on an interim basis as a committee decides on the new CEO. Lesjak also confirmed she won’t be trying out for the role of CEO in a letter to employees.
Hurd has been praised within Silicon Valley for reviving the company after the reign of previous CEO Carly Fiorina, who pushes the merger between HP and Compaq. Hurd also became chairman of the company after his predecessor, Patricia Dunn, was implicated in a spying scandal that was trying to find a leaker amongst the company.
HP shares fell 10 percent and losing $9 billion in market capitalisation after news of his resignation hit the news stands.
Some parts have been edited by Terence Huynh