Question

Mark Hurd resigned as CEO of Hewlett Packard amid accusations of sexual harassment and faked expense reports, thereby violating Hewlett Packard's ethical standards. Before he did so, however, he attempted to negotiate to retain his position and compensate the company for costs related to legal disputes resulting from his actions. Nevertheless, his compensation package, including stock options, was over $40 million, due to the success the company saw under his leadership.

In what ways did Hurd's resignation hurt Hewlett Packard?

In what ways did Hurd's resignation improve the company's situation?

Answer 1

Mark Hurd served he HP between years of 2005 to 2010 for 22 Quarters. The HP has improve its situation very much in leadership of Mr. Mark Hurd. Mark hurd was a excellent manager for the company

He served the company for the post of CEO and chairman. HP start it desktop sells under his leadership from 2007 and laptop sales from 2006. HP also increase its market share in inkjet and laser printers to 46 percent and 50.5 percent in his leadership.

HP posts profits in every quarter under his leadership as per expection of wall street. Stock price of HP gone double in his leadership while its revenue got increased by 63 percent.

Mark hurd effectively convert the said failoure of HP Compaq merger took place in 2002 from a problem a company to a benefits. Mark was a master in cost cutting they cut the cost of HP by reducing the data center, employee hedcount , employee benefits in a significant manner.

There are many advantage & disadvantage of mark hurd resignation to the HP. At the time the Mark Hurd resigned the HP perhaps HP need him leadership indeed. HP also pays severance payment to mark hurd of $ 12.2 million which has also had an negative impact on HP’s Financials.

Resignation of mark helped HP from come out of one man leadership as mark hold the company as a owner and hold two post of CEO and chairman which is a point of opposition from corporate governance standerds. The policies of mark hurd are not liked by some groups because they are more profit oriented so hurd resignation helped HP to come out from one man leadership and from certain corporate governance issues.

Mark Hurd case also disclose some problems in HP ‘s corporate ethics as allegation of improper expences incurred by mark and sexual harassment charges never clearly proved so the clear picture of reason of mark hurd resignation never come out. Because of mark hurd resignation to the company HP hhad to tried hard to compel the investor that thers is no consequences of resignation so it make a serious effect on investor centiments.

So from the above description it is clear that the resignation of Mr Mark Hurd put the HP in a mix situation wher HP come out from some issues but cost of its is very high due to losing a perfect manager like Mr Mark hurd under him HP touched the new skies of success.