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

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

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

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?