HP CEO Mark Hurd Resigns

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In a shocking development HP's CEO Mark Hurd resigned on
Friday on sexual abuse charges.  Post this development HP
Board has appointed CFO Cathie Lesjak, 51, as CEO on an interim basis.
Lesjak is a 24-year veteran of the company who has served as
HP's CFO and as a member of the company's Executive
Council since January 2007. She oversees all company financial matters
and will retain her CFO responsibilities during the interim period.

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 the former contractor
to HP. The investigations however determined that there were no
violation of HP's sexual harassment policy, but did find
violations of HP's Standards of Business Conduct. For
instance a report in leading business journal cited that Hurd in the
span of two years had submitted $1,000 to $20,000 expense receipts
marked as personal and un-related to business.  Reports now
suggest that the contractor who was associated with HP's
marketing between 2007 to 2009, seemed to have approached the
HP's board this June and levelled charges against Hurd.

Commenting on this development Hurd said: “As the
investigations 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. The corporation is
exceptionally well positioned strategically.”

Hurd's exit comes at the most in-appropriate time as he was
seen as the turn-around man for HP as he stabilised the behemoth post
the controversial exit of Carly Fiorina. Hurd, the former NCR corp
executive did turn around HP. Billed as one of the finest mangers of
corporate America Hurd steered
HP to greater heights and sharpened HP's services
capabilities to counter its arch rival IBM. The acquisition of EDS was
a case in the point and clearly realigned HP's competencies.

With HP all set to  release its final results for the third
fiscal quarter on Thursday, Aug. 19, 2010, it indeed has a tough task
explaining the recent developments and the likely impact it will have
on its business.