Mark Hurd's Exit Package Worth $28 Million

Ousted HP CEO Mark Hurd, 53, who abruptly resigned on Friday after an investigation into allegations of sexual harassment, will receive an exit package worth $28 million. In fact, prior to Friday's events, Hurd had been negotiating with the company over a new three-year contract which would have been worth $100 million, according to an unnamed person familiar with the negotiations.

Hurd had previously been applauded for HP's rise as the world's largest technology company. However, the company's investigation after a complaint over a sexual harassment complaint found that Hurd had falsified expense reports and other documents to conceal a relationship with a contractor, and additionally allegedly helped the woman get paid for work she didn't do.

As a result of the announcement, HP's shares dropped nearly 10 percent on Friday, closing at $41.85. To somewhat alleviate concerns over the financial state of the company, HP released preliminary Q2 results.

HP said it expects to report earnings of 75 cents per share, compared to 67 cents a year earlier. Excluding one-time expenses, HP said results will be $1.08 per share, which would be a penny higher than analysts' expectations. Revenue is expected to be $30.7 billion, slightly higher than analysts' expectation, and 11 percent higher than 2009.

In terms of his exit package, Mark Hurd, a married father of two, will receive a $12.2 million severance payment and nearly 350,000 shares of HP stock worth about $16 million at Friday's closing price. Additionally, HP also extended the deadline for Hurd to exercise options to buy up to 775,000 HP shares.

As interim CEO, the company named its chief financial officer, Cathie Lesjak, 51. Lesjak has been with the company 24 years, but has taken already herself out of the running to fill the position permanently. HP's Board of Directors has set up a committee to search for a permanent replacement.
Tags:  Hewlett-Packard, CEO
3vi1 4 years ago

This guy has a yearly salary that's 400x greater than what a top tech can make, and this is what he gets when he screws up royally.... I sometimes wish I had been born a heartless *** and gone into management.

Super Dave 4 years ago

Woman in HP Scandal 'Saddened' by CEO Mark Hurd's Ouster


50-year-old hottie takes down Mark Hurd! Read all about it HERE



digitaldd 4 years ago

[quote user="Super Dave"]

Woman in HP Scandal 'Saddened' by CEO Mark Hurd's Ouster


50-year-old hottie takes down Mark Hurd! Read all about it HERE



Wow it looks like she made Skinimax movies in the early 1990's.. Even appeared on Silk Stalkings which this would make a great episode of if it involved a murder. You know I'm OK with Hurd's $28mil exit compensation package as I don't own HP stock and they aren't being bailed out with my tax money. Now ask me about Goldman, AIG, etc and I'm steamin' mad with smoke blowing out my ears.

fat78 4 years ago

What about BP's ceo that guy didnt even get fired.

Xylem 4 years ago

^^ @ Dave, this should have been the topic that another para on HurD.

@3vi1, Seriously, I always dream of those big bucks!!

acarzt 4 years ago

Man, that is an absurd amount of money... I wish I could get a $12,000,000 severence package and $16,000,000 worth of stock when I got fired... I would get fired right now if I knew that was the reward.

acarzt 4 years ago

To put that into perspective... He made more money on his severence pay alone(not even including the shares of stock) he made more than any human being could make in his entire life with a salary of $100,000/yr.

It would take you 120 years of working to make that much money.

Throw in the stock options and it would take you 112 years making $250,000/yr

$250k /yr is a lot of money.... and you still wouldn't live long enough to see what this guy made by screwing up.


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