An investigation has begun to look into the circumstances surrounding Mark Hurd’s departure from Hewlett-Packard Co. Hurd was forced out as CEO of the company over allegations of sexual harassment and inaccurate expense reports. HP filed papers in federal court in San Jose, California, regarding the investigation on January 14.
According to the Associated Press, a shareholder demanded that HP’s board look into Hurd’s resignation and the large severance package he received. The shareholder wants to know why the board approved such a large severance payout and believes that it amounted to “corporate waste.”
According to the AP, shareholders are suing HP for what they believe was a wasteful payout. Hurd was forced out of the company last year and given a $12.2 million cash payout to leave. He also received stock options in his severance package and recently moved to sell $30 million worth of that stock.
The investigation will be done by outside lawyers and board members who joined the board after Hurd left the company. Hurd is also being investigated by the Securities and Exchange Commission. He is now co-president at Oracle Corp.
Source:
HP to investigate Mark Hurd’s departure, severance (Associated Press)