14 DAY TRIAL // Lawsuits are definitely nothing new on the IT market, considering the many antitrust charges and patent litigation that arise every so often. Still, though they are common, their consequences can be quite unusual at times, as is proven by a particularly curious case that is plaguing HP's now former Chief Executive Officer. What exactly happened was that CEO Mark Hurd somehow got involved in an investigation concernign inappropriate business conduct. Apparently, he stepped down from his position immediately.
Outside legal counsel carried out some investigations and found that, while HP's policy had not been violated, HP's standards of business conduct had been. Thus, the CEO stepped down and chief financial officer Cathie Lesjak was appointed interim chief executive. She has been with the company for years and served as CFO and member of the executive council since January 2007. Needless to say, such a turn of events is quite surprising, especially with the company itself having gone through fairly bright times recently, what with revenues growing by 11% on-year during Q3 of FY 2010.
“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. [...] 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," said Mark Hurd.
“[Mark Hurd] has worked tirelessly to improve the value of HP, and we greatly appreciate his efforts. He is leaving this company in the hands of a very talented team of executives. This departure was not related in any way to the company’s operational performance or financial condition, both of which remain strong,” said Robert Ryan, lead independent director of HP's board.