HP's Hurd Resigns

By Doug Olenick -- TWICE, 8/7/2010

Palo Alto, Calif. - Hewlett-Packard CEO Mark Hurd resigned, effective Aug. 6, as chairman and CEO amid allegations of a sexual harassment made by an outside contractor.

Chief financial officer Cathie Lesjak has replaced Hurd on an interim basis.

In a written release Friday afternoon, HP's board said Hurd's decision followed an investigation held by outside legal counsel and the company's general counsel office.

"The investigation determined there was no violation of HP's sexual harassment policy, but did find violations of HP's standards of business conduct," the company said.

Hurd responded, "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 HP and which have guided me throughout my career. After a number of discussions with members of the board, I will move aside and the board will search for new leadership. 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 and I believe this is the only decision the board and I could make at this time. I want to stress that this in no way reflects on the operating performance or financial integrity of HP."

HP's board has set up a committee to find a replacement. Lesjak has taken herself out of consideration for the position. She will serve until a replacement is found.