HP CEO Mark Hurd resigned yesterday after an investigation revealed that he had failed to disclose a personal relationship with a contractor. HP’s current CFO, Cathie Lesjak, has been appointed as an interim CEO to fill the void left by Hurd.
“Hurd’s decision was made following an investigation by outside legal counsel and the General Counsel’s Office, overseen by the Board, of the facts and circumstances surrounding a claim of sexual harassment against Hurd and HP by a former contractor to HP”, read an official statement from the company. Although the investigation cleared Hurd of the sexual harassment charges, it found him in violation of Hewlett-Packard’s standard of business conduct.
This is obviously a big setback to the personal computing giant. Although Hurd has been criticized in the past for some of his actions, he is generally considered to be a successful CEO who managed to revive the company’s fortunes. The news of the scandal sent HP’s stocks plummeting by 10%.