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HP's Mark Hurd Resigns in Disgrace by John M. Curtis Copyright
August 11, 2010 Resigning in disgrace, Hewlett Pakard’s 53-year-old CEP Mark Hurd fell hard off the pedestal, falling, once again, for another blond ex-adult movie star, not what you’d expect from the Christian Baylor University graduate. While nothing like the blockbuster tales of PGA golf champion Tiger Woods, Hurd’s “affair” offered far less salacious details and more evidence that people in high places show an Achilles Heel when in comes to their own love life. “I realized there were instance in which I did not live up to the standards and principles of trust, respect and integrity that that I espoused at HP and which have guided me throughout my career,” Hurd read a carefully prepared statement August 6. “After a number of discussions with member of the board, I will move aside and the board will search for new leadership,” officially resigning his hard-earned post as president and CEO. Hurd took HP’s reins from interim CEO Robert Wayman Sept. 22, 2006, after a tumultuous power struggle a year earlier ousting controversial CEO Carly Fiorina, now the California GOP senate candidate seeking to replace Sen. Barbara Boxer (D-Calif.). Hurd was tasked with cleaning up Fiornia ‘s mess. Carly resigned Feb. 10, 2005 under heavy pressure from HP’s board after taking the company in the wrong direction, especially the costly boondoggle acquiring Compaq Computer. After taking the reins of HP, Hurd laid off 15,200 workers, showing the kind of ruthless efficiency that won him high marks from the board and shareholders. His resignation Aug. 6, shocked many insiders, since Hurd and former TV-reality star Jodie Fisher deny having an affair. Fisher filed an unspecified sexual harassment claim against Hurd, prompting the HP board to investigate a suspicious business relationship. When the HP board discovered unjustified payments to Fisher for “event planning,” they voted, on the advice of a “crisis communication” expert, to let Hurd go. “As the investigation progressed, I realized there were instance 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 . . .” said Hurd, swallowing the medicine. HP’s justification for firing Hurd makes no sense. They’ve already discussed a severance package worth nearly $40 million, a golden parachute so extravagant HP’s stock actually plunged eight percent. If Hurd really had a serious ethical lapse or breached his contract, the board would have been far tougher readily paying out his golden parachute. Based on HP and media reports so far, he didn’t do anything to warrant his firing. Whatever happened between 50-year-old former adult movie actress Jodie Fisher and Hurd, the sexual harassment claim seems without merit. HP’s board seems more focused on unjustified payouts to Fisher for “event planning” services. “The corporation is exceptionally well positioned strategically,” said Hurd, attesting to his superb leadership. “HP has an exceptionally talented executive team supported by a dedicated and customer focused work force. I expect that the company will continue to be successful in the future,” said Hurd, in a twist of irony. No board could possibly risk upending a company with strong leadership over what looks like a bogus sexual harassment claim. Whatever the advice of HP’s unknown “PR expert,” there’s far more damage to the company changing CEOs than dealing with occasional complaints from disgruntled employees. HP’s revenue for 2010 Q-3 was up 11% from 2009, generating around $30.7 billion. That kind of performance speaks volumes about Hurd’s management skills, not the ease with which HP’s board tossed him under the bus. Whatever Hurd’s mistakes, they were small potatoes compared to Fiorina, whose stubborn insistence on the Compaq merger cost the company untold billions. HP’s board could have just as easily stuck with Hurd, without causing unwanted damage to the company’s reputation. Since there’s no egregious sexual harassment or glaring fiscal impropriety, HP’s board showed the kind of knee-jerk response showing too much micromanagement or a hidden agenda. “The board deliberated extensively on this matter. It recognized the considerable value that Mark has contributed to HP over the past five years in establishing us as a leader in the industry,” said the board. No corporate board has the company’s best interests in mind by throwing the baby out with the bathwater. Dumping Hurd doesn’t help the company’s image or bottom line, long-tainted by Fiorina’s blunders and bad decisions. Corporate boards controlled by former family members or friends of HP’s old mom-and-pop operation do more damage to the company’s bottom line. Unless there’s something unreported with respect to Hurd’s on-the-job sexual or business conduct, the board must let upper management deal with unwarranted claims from former employees. Hurd’s departure hurt’s HP by showing the kind or arbitrary and capricious decisions made by corporate boards unfamiliar with the company’s operations. If Hurd’s actions were really so egregious, HP’s board should have never agreed to the extravagant golden parachute that hurt the company’s bottom line. About the Author John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He's editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.
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