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HP's Hurd Resigns

8/07/2010 12:54:25 AM Eastern

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.