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HP orders probe into Hurd's departure, report says

By Ralph Jennings
January 20, 2011 05:12 AM ET

IDG News Service - Hewlett-Packard plans to commission an external probe into the resignation of former CEO Mark Hurd, including his controversial multimillion dollar severance package.

The investigation using outside lawyers would examine the “circumstances surrounding the departure of Mark Hurd and the board’s decision to approve the separation agreement between HP and Mr. Hurd,” according to court papers filed Jan. 14..

HP's plan for an outside investigation follows a lawsuit in San Jose by shareholders who allege that the company’s directors wasted money by giving Hurd $53 million in severance.

Shareholders and HP have asked a judge to put that lawsuit on hold for the investigation, but Hurd said he would consent only if the company gives him information that it has been unwilling to provide, Bloomberg reported.

Hurd’s resignation, which is also being investigated by the Securities and Exchange Commission, raised other questions about the former CEO's relations with HP.

An internal HP investigation into Hurd found that he tried to hide a personal relationship with a contractor.

In September, Hurd was named co-president of Oracle.

Reprinted with permission from IDG.net. Story copyright 2014 International Data Group. All rights reserved.
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