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

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?