The news broke on Friday regarding the resignation of Mark Hurd as the chairman and CEO of HP (Hewlett-Packard). The reason for his resignation was given that he was the subject of a sexual harassment complaint. The related investigation also uncovered that he also falsified expense reports in order to conceal the inappropriate relationship, even though the relationship was not sexual in nature.
So, the bottom line is that Hurd was forced out for dishonesty and such actions would get most employees fired without any recourse.
But here is the kick in the gut (especially if you are an HP shareholder)
According to CBS News, Hurd will get the following:
- $12.2 million severance payment and 350,000 shares of HP stock worth around $16 million according to Friday’s closing price.
- Extended the deadline to exercise an additional 775,000 options of HP shares.
I guess that when you are a CEO and dishonest, you can lose your job and get rewarded. If a normal employee had done the same thing, they would have been fired and been given nothing!
I think that HP shareholders need to ask the Board of Directors some hard questions. Why would they “reward” a dishonest CEO with an unbelievable severance agreement along with other perks?
I guess I will have to teach my son that in some cases dishonesty does not have a severe penalty. This one is going to be tough to explain. Luckily my son is only 4 and does not understand this stuff, but older kids and some adults may have questions also.
What really bothers me is that the CEO of the company that I work for serves on the board of HP!
Enough said… your comments or opinions?