Hewlett-Packard shared values include:
(not applicable to severance packages of
ousted CEO's)
Trust and respect for individuals
We work together to create a culture of inclusion built on trust, respect and dignity for all.
Uncompromising integrity
We are open, honest and direct in our dealings
By ASHLEE VANCE
New York Times (8/6/10)
Mark V. Hurd, who turned Hewlett-Packard into the world’s largest technology company on the back of fierce fiscal discipline, has been ousted from his post for the lowliest of corporate offenses — fudging his expenses.
H.P.’s board stunned Silicon Valley and Wall Street late Friday by announcing Mr. Hurd’s resignation as chairman and chief executive of the computing and printing giant, involving what it said was a “close personal relationship” with a contractor who helped with the company’s marketing.
The woman’s lawyer contacted the company in late June, charging sexual harassment. While the directors were investigating that charge, they found inaccurate expense reports that covered payments made to the woman. The directors said, however, that the sexual harassment charge was unsubstantiated.
The board charged that Mr. Hurd, 53, failed to disclose his use of company funds. It urged Mr. Hurd to resign, but he balked and offered to compensate the company for the disputed funds, said to range from $1,000 to $20,000, according to a person close to Mr. Hurd who was briefed on the situation but was not authorized to speak publicly.
The board, however, insisted.
“This was a necessary decision,” said Marc L. Andreessen, a venture capitalist and a director.
Mr. Hurd’s actions “showed a profound lack of judgment,” said Michael Holston, executive vice president and general counsel whom Mr. Hurd had brought into the company in 2006 after he investigated a boardroom scandal involving company spying on board members, employees and journalists. That investigation ended with the resignation of the company’s chairman and the elevation of Mr. Hurd.
Mr. Holston also said Mr. Hurd used inaccurate expense reports to conceal the relationship with the woman. Mr. Hurd, who is married, has denied having a sexual relationship with the woman, according to the person briefed on the situation. Mr. Hurd declined comment.
Gloria Allred, the celebrity lawyer who has agreed to represent the woman, said, “We want to make clear that there was no affair and no intimate sexual relationship between our client and Mr. Hurd.” She declined to make the woman available for an interview or to identify her.
Mr. Hurd, who was in the midst of contract negotiations with the board, did not file his own expenses, this person said. H.P.’s board and Mr. Hurd had, over the past month, been negotiating a new contract that would have had him earning $100 million over the next three years, according to a person briefed on the meetings.
Mr. Hurd is leaving with $12,224,693 in severance, according to a company filing with the Securities and Exchange Commission on Friday. H.P. also extended the deadline for Mr. Hurd to purchase up to 775,000 shares of H.P. common stock, which were vested as of Friday, and 330,117 performance-based stock units that will also vest. SEC filing-parting gifts details
Mr. Hurd, in a statement, said: “This is a painful decision for me to make after five years at H.P., but I believe it would be difficult for me to continue as an effective leader at H.P. and I believe this is the only decision the board and I could make at this time.
“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 H.P.” Link to complete article
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