Hurd walks away with more than US$12 million

After resigning amid allegations of sexual harrassment, Mark Hurd gets a $12 million severance check

Mark Hurd may have been forced to resign as CEO of HP for conduct deemed inappropriate by his board, but he won't be leaving empty-handed.

According to the terms of his resignation filed with the Securities and Exchange Commission, Hurd will earn a severance payment of US$12.2 million. He will also be able to cash in on various large stock opportunities, including 330,177 performance-based restricted stock units that were granted to him in 2008. He was also given an extension until Sept. 7 of the expiration date of outstanding options to purchase up to 775,000 shares of HP stock that were vested as of Friday.

In exchange, Hurd signed "a general release of claims in favor of HP," according to the filing.

On Friday, HP announced that Hurd agreed to resign after a former marketing consultant alleged that he sexually harassed her. An investigation found that Hurd had a personal relationship with the consultant that he hid from the board and covered up using inaccurate expense reports.

HP CFO Cathie Lesjak will serve as interim CEO while the board hunts for a permanent replacement for Hurd.

His payout appears to be close to the terms set out in the company's severance plan for a CEO who is involuntarily dismissed, not for cause. An HP CEO who is involuntarily dismissed, not for cause, is eligible for two times their base pay plus the average annualized bonus paid during the preceding three years, according to company proxy materials. Hurd's base pay in 2009 was $1.2 million and total bonuses from 2007 to 2009 amounts to $7.9 million.

Hurd's total compensation from HP in 2009 was over $30 million.

HP's general counsel, speaking during a conference call to discuss Hurd's resignation, seemed to leave the door open to potential lawsuits regarding Hurd's activities. In response to a question about whether any lawsuits had been filed, Mike Holston, HP's general counsel said none had been filed "at this point."

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesHewlett-Packardpersonnel

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service
Show Comments

Essentials

Mobile

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?