Question

Mark res9gned as CEO of Hewlett Packard amid accusations of sexual harassment and faked expense reports, thereby violating the company's ethical standards. before he did this, he attempted to negotiate to retain his position and compensate the company for cost related to legal disputes pertaining to his actions. His compensation package including stock was over $40 million, due to the success the company saw under his leadership. What ways did Mark's resignation hurt Hewlett Packard?

Answer 1

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

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

He served 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 increases its market share in inkjet and laser printers to 46 percent and 50.5 percent in his leadership.

Mark hurd effectively convert said failure 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 data center, employee headcount, employee benefits in a significant manner.

There are many advantage and disadvantage of mark hurd resignation to the HP. At 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 a negative impact on HP’s Financials.

Resignation of mark helped HP from come out of one man leadership as mark hold the company as an owner and hold two post of CEO & chairman which is a point of opposition from corporate governance standards. 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.

The Mark Hurd case also disclose some problems in HP ‘s corporate ethics as allegation of improper expanses 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 company HP to tried hard to compel the investor that there is no consequences of resignation so it make a serious effect on investor condiments.

So from above description it is clear that the resignation of Mr. Mark Hurd put the HP in a mix situation where 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.