Posts Tagged ‘hp’
HP reputation – fired CEO gets $28 million to leave
The high profile CEO of Hewlett-Packard Co, the world’s biggest technology company had to step down under a smokescreen set off by a sexual harassment case filed by a lady marketing consultant who was working for him. Mark Hurd, who was connected to 28 board members in 3 different organizations across 5 different industries was one of the most powerful figures in HP and was the architect of the work culture and success of this technology giant. It is ironical that the CEO Mark Hurd was in discussion for a new contract worth about $100 million, when he got marching orders that came with a purse of $28m, one third of the contract value that he was eyeing at that time.
HP said that it ousted Hurd after its investigation of a sexual harassment complaint found he had falsified expense reports and other documents to conceal a relationship with a female contractor who worked for HP. The sudden and shocking departure pf the HP CEO took the stock markets by surprise and HP’s shares tumbled sharply by over 7% as the first reports were flashed. Though HP maintained that the change of guard at the helm of affairs will have no bearing on the prospects of HP, investors opted to take a wait and watch policy.
The Mark Hurd episode became the overnight talking point for many journalists and anxious investors, which in turn left a dent on the online reputation of HP. However, HP was quick to act and ensured its brand protection by removing Hurd. In the coming days, how best the company recovers its lost ground would be of great concern for not just the share holders of HP but also millions of HP brand loyal customers and technology buffs all over the world.