Reuters reported on August 6, 2010 the shocking announcement the HP, the world’s top personal computer maker, sent its shares plunging 10% as CEO Hurd, who is one of the most admired executives in Silicon Valley, was found having a close personal relationship with a female contractor and that was never disclosed to the board.
The board investigation found that Mr. Hurd demonstrated a profound lack of judgment that seriously undermined his credibility and damaged his effectiveness in leading HP. According to HP, Mr. Hurd filed numerous inaccurate expense reports that concealed his relationship with the female contractor, who also received compensation and expense reimbursements without legitimate business reasons. The expenses issues stretched over two years and were related to travel, meals and lodging and totaled to $20,000.
