SAN FRANCISCO — Hewlett-Packard Co. said chief executive Mark Hurd is stepping down following a probe that found he falsified expense reports related to a former HP contractor who accused him of sexual harassment.
HP said Friday that Hurd decided to leave after the sexual-harrassment claim, which was made against him and the company. The company probe concluded that HP’s sexual-harassment policy was not violated, but that its standards of business conduct were.
In a conference call with analysts late Friday, Michael Holston, HP’s general counsel, said Hurd displayed a “systematic pattern” of turning in inaccurate expenses and financial reports connected to the female marketing contractor who accused him of sexual harassment.
“The facts that drove the decision for the company had to with integrity, had to do with credibility, had to do with honesty,” Holston said, declining to elaborate on specifics.
Holston added that the pattern of inaccurate financial reports “related to Mark’s conduct with this specific individual and wasn’t broader than that.” After the announcement, the technology company’s shares dropped nearly 10 percent.
In a statement, Hurd said that during the investigation he “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.” He added that he believed it would be “difficult to continue as an effective leader at HP.” Hurd and Robert Ryan, HP’s lead independent board member, stressed that Hurd’s departure has nothing to do with the company’s financial health.
