HP chief executive officer Mark Hurd has resigned following an investigations into claims of sexual harassment.
The investigation found that Hurd engaged in a personal relationship with a contractor hired by the company and that the relationship wasn’t disclosed to the board. The employee had been paid by HP although there had been no professional reason for doing so. The investigation also found, and improper expense reports had been submitted by Hurd.
"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," said Hurd who named Cathie Lesjak, the current chief financial officer, as an interim CEO while the board searches for a replacement.
An AP report claims that Hurd has settled with his accuser and that Hurd maintains that the expenses were legitimate business expenses and that any irregularities in the reports may have been due to filing incorrectly by his staff.
A SEC filing indicated that the $17m a year former HP boss would receive around $12m in cash and $16m of HP stock as severence.