HP CEO and Chairman Mark Hurd resigns amid sexual harassment claims after settling a suit with a former reality TV contestant, leaving the high-tech giant to search for another leader.
It’s not often that my professional world collides with some admittedly questionable personal interests, but last week when news broke that HP CEO Mark Hurd stepped down following a sexual harassment suit filed by a former contestant on a reality television show, I experienced a bit of whiplash.
Read Time’s take on the news — Corporate Scandals: Why HP Had to Oust Mark Hurd
View Time’s slideshow on Top 10 CEO Scandals
Because I keep up on gossip rags almost as much as high-tech mags, I realize no industry leader – or government official, athlete or actor – is safe from a sex scandal, but to learn that HP’s chief was leaving for potentially philandering with an employee and not something more related to questionable accounting practices did surprise me some. (Nothing specific to Hurd, but generally high-tech CEOs get caught and punished for being creative with accounting and not necessarily for schmoozing the assistants.)
But as the news unfolded more, inaccurate use of company funds (reportedly totaling around $20,000) was at the root of Hurd’s speedy exodus. Hurd admitted he didn’t act in line with corporate policy and will reportedly get millions to leave HP. The suit filed by Jodie Fisher, an actress who worked for HP as a marketing consultant and who is represented by the infamous Gloria Allred, was reportedly settled before the news hit and after Hurd offered to replenish the misappropriated cash.
Jodie Fisher
If the lawsuit is settled and the funds returned, then why would HP work so quickly to distance its brand from Hurd’s name, especially considering Hurd is widely credited for helping HP surpass competitors IBM and Dell in worldwide technology markets? For one, the news of Hurd resigning caused the company’s stock to plummet, losing billions in value, according to the Financial Times. While the company looks to fill Hurd’s shoes (temporarily with CFO Cathie Lesjak), the industry is left wondering what exactly happened between the CEO and the reality TV actress.
In this era of celebrities being brought down by their personal lives, one must have to consider there is more to the inappropriate behavior than is being shared. (An article this week in Computerworld suggested several reasons the chief left his post.) Perhaps the timing was right for a new leader and the company wanted to avoid another publicity challenge, similar to the one HP endured in 2006 when it was revealed an HP executive spied on the board of directors, journalists and others.
In this case, it’s not the scandal that intrigues me as much as the fact that a pseudo-celebrity was able to cash in on one of the technology industry’s more respected CEOs. Now I watch my share of reality TV, but the show featuring Fisher, “Age of Love,” was not on my preferred viewing list. And I must disclose that I do not enjoy reality dating programs in general, for like most of reality TV, the goal is to humiliate the willing participants and to some degree, lessen the human condition. Do people really look for love on television? I don’t believe that yet, but I do think that many participants are looking for fame and/or money and are willing to degrade themselves in the process. Perhaps it’s not fair my opinion became a bit skewed upon learning that Hurd’s accuser was on a reality dating show and hired Allred to plead her case, but it did.
At the very least, the fact that Fisher enlisted Allred (who also represented Tiger Woods’ first public mistress and now is reportedly taking on the case of Mel Gibson’s alleged mistress) suggests that Fisher from the start was out for big money in this suit against Hurd (the settlement terms are undisclosed). And for her part, following Hurd’s ouster Fisher released a statement saying she was “saddened” and essentially she didn’t wish for Hurd to lose his job due to the sexual harassment lawsuit. She felt there was enough inappropriate behavior to file a suit, but not enough impropriety for his corporate ethics to be called into question?
HP doesn’t plan to discuss the issue further, and Hurd’s quick but profitable exit could be in part due to HP’s public relations team working hard to prevent any more investigation into the actions and relationships of Hurd. A clean break could benefit HP and help the company prevent Hurd’s personal/professional actions from further sullying the company’s name. With expense reports (albeit a small figure considering the size of the company) in play, perhaps the company is smart to remove the source of the misappropriated funds. But something else must be happening here; something more than a high-tech chief ultimately falling victim to a reality wannabe. Hurd seems smarter than that.
What do you think is truly behind Hurd’s resignation? Did news of his potentially inappropriate relationship with Fisher cause you to doubt the company? Did Hurd fall victim to an opportunistic former employee? Please leave a comment here or let me know what you think directly at Denise.Dubie@ca.com.
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