HP CEO Mark Hurd has resigned, leaving CFO Cathie Lesjak to run the company on an \u201cinterim basis.\u201d The reason for quitting? He was told to leave by legal counsel due to an investiagtion of sexual harassment against him by an outside contractor. According to the press release, \u201cthe investigation determined there was no violation of HP\u2019s sexual harassment policy, but did find violations of HP\u2019s Standards of Business Conduct.\u201d<\/p>\n
Hurd said: \u201cAs 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.\u201d<\/p><\/blockquote>\n
HP also announce preliminary third quarter financials. They are up 11% compared to the same quarter last year with revenue of about $32.7 billion. Sexual harassment cases notwithstanding, at least Hurd raised the company out of the doldrums this year and spearheaded the\u00a0Palm acquisiton.<\/p>\n
Compensation<\/h3>\n
In 2008, Hurd’s total compensation was $33,952,237, including a base salary of $1,450,000, stock award of $7,907,660, cash bonus of $23,931,882, and $662,695 in perquisites and other compensation.\u00a0It was the largest bonus of any CEO in 2008, although Hurd himself implemented wage freeze on the employees.<\/p>\n
In 2009, Hurd made a total of $24,201,448, including a base salary of $1,268,750, stock award of $6,648,092, cash bonus of $15,809,414 and $475,192 in benefits and other compensation. <\/span><\/span>Hurd said he believes in what he calls “pay for performance”, such that employees have a substantial part of their salaries “at-risk”, which gets paid only when the company’s performance measures up.<\/p>\n
sources: <\/em>Wikipedia<\/a> <\/strong>and CrunchGear<\/a><\/strong><\/p>\n