The CEO OF Hewlett Packard Steps Down For Alleged Sexual Harassment

We know Hewlett Packard (HP) for its computers, but not for being in the news for alleged sexual harassment on the part of its CEO, Mr. Mark Hurd. To that end, Bloomberg is reporting that HP’s CEO, Mark Hurd, is stepping down because of a charge of sexual harassment made by one of HP’s employees - because of the sexual harassment allegations, Mr.  Hurd has resigned, giving up the HP CEO position and its presidency. Mr. Hurd, five years ago, came to the fore when he took over for Carly Fiorina, the latter being forced out over the 2002 controversial take over of Compaq.

These are the pertinent data for HP during Mr. Hurd's tenure as CEO and president: During Hurd's time with HP, the company has more than stabilized. Between the company's 2006 and 2009 fiscal years, HP grew revenue from $91.6 billion to $114.6 billion and more than doubled its earnings per share.

Mr. Hurd has stabilized HP, made acquisitions to HP, and increased its revenues, but those marks were not enough to overcome even the alleged charge of sexual harassment, which resulted in Mr. Hurd’s resignation. As is the wont with these kinds of investigations, the employee who made the sexual harassment allegation name wasn’t reported. The details of the allegations are not known because of its ongoing nature.

HP will not be rudderless; the company’s board has chosen, as interim CEO, Cathie Lestak, who has been employed at the company for some 24 years. No one knows when the alleged harassment investigation will be concluded, but as of now, Mr. Hurd will not be the coveted CEO or President of HP. By the way, do not feel too sorry for Mr. Hurd, notwithstanding the alleged serious sexual harassment charges - for he is walking away with a severance pay from HP of some $12 million.