Mark Hurd's Exit Package Worth $28 Million
Hurd had previously been applauded for HP's rise as the world's largest technology company. However, the company's investigation after a complaint over a sexual harassment complaint found that Hurd had falsified expense reports and other documents to conceal a relationship with a contractor, and additionally allegedly helped the woman get paid for work she didn't do.
As a result of the announcement, HP's shares dropped nearly 10 percent on Friday, closing at $41.85. To somewhat alleviate concerns over the financial state of the company, HP released preliminary Q2 results.
HP said it expects to report earnings of 75 cents per share, compared to 67 cents a year earlier. Excluding one-time expenses, HP said results will be $1.08 per share, which would be a penny higher than analysts' expectations. Revenue is expected to be $30.7 billion, slightly higher than analysts' expectation, and 11 percent higher than 2009.
In terms of his exit package, Mark Hurd, a married father of two, will receive a $12.2 million severance payment and nearly 350,000 shares of HP stock worth about $16 million at Friday's closing price. Additionally, HP also extended the deadline for Hurd to exercise options to buy up to 775,000 HP shares.
As interim CEO, the company named its chief financial officer, Cathie Lesjak, 51. Lesjak has been with the company 24 years, but has taken already herself out of the running to fill the position permanently. HP's Board of Directors has set up a committee to search for a permanent replacement.