Shock as HP supremo quits over sex claims

Wall Street was in shock yesterday after the chief executive of technology giant Hewlett-Packard was forced to resign over claims of sexual harassment and fiddling expenses to hide a secret relationship with a former contractor.

The swift and stunning downfall of Mark Hurd, 53, sent HP’s stock tumbling last Friday.

Mr Hurd had a nearly bulletproof reputation on Wall Street for his stewardship of the world’s biggest maker of personal computers and printers.

HP said he was forced out after the company discovered that he had a secret relationship with a woman who worked with the company on marketing matters.

He also falsified expenses and other financial reports to hide the relationship and help pay her for work she did not do, HP said.

Mr Hurd, who will get a €9.2 million severance payment, said it was a “painful decision” to leave but admitted 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”.

Michael Holston, HP’s general counsel, said in a conference call with analysts that Mr Hurd’s actions showed “a profound lack of judgment” and that his “systematic pattern” of submitting falsified financial reports to hide the relationship convinced the board that “it would be impossible for him to be an effective leader moving forward and that he had to step down”.