HP CEO Hurd resigns over sexual harassment investigation

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Hewlett-Packard Chairman and CEO Mark Hurd resigned from the company Friday after HP conducted an investigation into allegations of sexual harassment.

Hurd's resignation marks a stunning end to what had been by most accounts a wildly successful five years at the helm of what is now the largest computer company in the world, measured by total revenues.

The resignation takes effect immediately. He will be replaced by Chief Financial Officer Cathie Lesjak, who will act in an interim capacity.

HP said its board of directors reached a unanimous decision after Hurd was accused of sexual harassment by a former marketing contractor to HP in late June. HP says its own investigation found "no violation of HP's sexual harassment policy, but did find violations of HP's Standards of Business Conduct."

On a conference call with the media Friday afternoon, HP General Counsel Mike Holston said Hurd had a "close, personal relationship" with a female contractor for two years between the fall of 2007 and 2009 that he did not disclose to the board of directors. The name of the contractor and her contracting firm were not disclosed.

The contractor has retained Gloria Allred of the Los Angeles-based law firm Allred, Maroko & Goldberg as her attorney. Allred confirmed she is representing the woman, who she declined to identify, and also said in a statement that "we wish to make clear that there was no affair and no intimate sexual relationship between our client and Mr. Hurd," throwing the exact nature of Hurd's "close personal relationship" with the woman into doubt.

Allred is one of the more famous sexual harassment lawyers in the business, taking high-profile cases and popping up in the media on a regular basis. She also declined to comment on any pending litigation against Hurd or HP.

Holston said the company's investigation revealed that the contractor had received compensation and incorrect expense reimbursement from Hurd as part of a systematic attempt to conceal his relationship with her.

The relationship reportedly consisted of private dinners between the two after marketing events she attended with Hurd in the U.S., Europe, and Asia. When reporting expenses for those dinners, he would say he ate by himself or with someone else, according to the New York Times. The same report cites a person close to Hurd saying that Hurd denied there was any romantic link between him and the contractor.

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