The news immediately made the price of HP stock plunged 10 percent to 41.85 dollars in U.S. trading after closing the stock exchange (after market), Friday (6/8/2010) ago.
The scandal started when a woman who is a contractor between the end of the 2007-2009 marketing contact HP HP directors in June. Mysterious woman who has not revealed his name was Hurd has accused him of sexual harassment against him.
Gloria Allerd, a lawyer from Los Angeles, has been admitted, as a lawyer is a woman who cast accusations. Despite stating his client and Hurd did not have sex, but Allerd still reluctant to disclose details about his client's allegation.
Just so you know, Allerd a famous lawyer who used to deal with top clients, including women who became Tiger Woods's infidelities.
Upon hearing the report, HP's board ordered an investigation. The result, Hurd did not violate the policy on sexual harassment prevailing in HP.
However, 53 years old man was proven to have close personal relationship with the woman earlier. "Our investigation found that Mark has made the wrong judgments. It would interfere with the credibility and effectiveness in leading HP damage. And, Mark agreed about this," said HP's General Counsel Mike Holston.
Holston also asserted that the decision to replace Hurd is a unanimous decision of all members of the board of directors of HP.
According to HP, Hurd also reported quite a lot of costs are not true to cover the relationship with the woman. In addition, marketing contractors also receive compensation and reimbursement for expenses without a legitimate business reason.
A source Hurd described the relationship with her as a "business friend" who had been eating together dozens of times. He also mentioned that the reported costs that include costs of travel, dining, and stay that lasted two years. The total came to about 20,000 U.S. dollars.
Hurd himself has admitted his guilt. "I am aware that there are some actions that do not fit my standards and principles of trust, respect, and integrity that I apply in HP," he said in a statement.
Board of Directors has appointed Cathie Lesjak who now serves as CEO Chief Financial Officer ad interim. He will lead the company's HP until the committee succeeded in obtaining a permanent replacement Hurd.
Great irony
The scandal is really ironic. Hurd is one of the most admired executives in Silicon Valley.
Hurd is also credited with the transformation process of HP's large, so now a technology company that pocketed the largest income in the world. This is the person who brought HP's advanced rapidly, from initially only a printer and computer maker into a company capable of providing complete technology services.
Hurd also known as the man who dared to take extreme measures to compete with other technology companies, like IBM, Apple, and Research In Motion (RIM). No wonder, since the former CEO of NCR Corp. HP is leading the last five years, HP's stock price has surged more than doubled.
"Mark Hurd is the person who played a major role in the process turn around HP. There will be a serious gap in HP's top leadership," said Susquehanna Financial Group analyst, Jeffrey Fidacaro.
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