Just in case you thought the Mark Hurd melodrama at Hewlett-Packard had played itself out, a new plot twist is refreshing the story. According to Monday's Wall Street Journal, the HP board voted to fire Hurd after the CEO reached a sexual-harassment settlement without the board's knowledge or input.
The Journal reported that the board felt the settlement got in the way of its investigation. The settlement was reached on Aug. 4 between Hurd and Jodie Fisher, an ex-marketing contractor to HP. The board also canceled a mediation session scheduled for Aug. 5, where Fisher and her lawyer were scheduled to meet with Hurd's lawyer as well as an outside counsel for HP.
But the newspaper also reported that, according to Hurd, HP had given instructions to Hurd to settle with Fisher before the mediation. An unnamed source, familiar with Hurd's thinking, said the former chief executive complied in every way with the board's investigation, although the board reportedly felt Hurd had not cooperated fully.
There isn't even agreement about whether Hurd was asked to speak with the board. Reportedly the board wanted him to but he declined -- but Hurd has reportedly said he was not given that opportunity. The Journal said the board, according to the unnamed source, had "enough evidence of misconduct" before the settlement meeting, including failing to disclose a personal relationship with a contractor and filing expense reports that concealed the truth.
Hurd's forced departure on Aug. 6 on the grounds of violations of HP's code of business conduct, hit the company in its stock price, and there is a shareholder suit over the decisions surrounding the ouster.
Hurd has denied an improper relationship, and Fisher has denied a sexual one.
Late last week, information came out indicating that a key aide to Hurd, Caprice Fimbres McIlvaine,...
Posted: 2010-08-16 12:27:50
