The company announced the “painful” decision between Hurd and the Board of Directors for the resignation on Friday 6th August, with CFO Cathie Lesjack acting as interim CEO.
The resignation came following a sexual harassment claim against both Hurd and HP, launched by Jodie Fisher, a former American reality TV star who had been working as a contractor for HP.
Although the investigation concluded he had not violated sexual harassment rules, evidence emerged that he had falsified expense reports, breaching the company’s Standards of Business Conduct.
In an official statement, Hurd said: “As the investigation progressed, I realized there were instances in which I did not live up to the standards and principles of trust, respect and integrity that I have espoused at HP and which have guided me throughout my career.
“After a number of discussions with members of the board, I will move aside and the board will search for new leadership.”
The shock resignation is reported to have knocked around £10 million from the company’s value.
Hurd was elected President and CEO in 2005, leaving a long career at NCR Corp, where he had been serving as President and CEO. His leadership has been credited with contributing to HP’s current success.
Under his guidance the company became the world leader in desktop and laptop computer sales, and increased its laser printer share to 50 percent, and ink to 46 percent.
He was also well known for his drive to make the company more efficient, streamlining several departments including IT and data sourcing.
The company shed 15,200 jobs early on in his tenure as CEO, and most employees, including Hurd himself, took pay cuts.
Robert Ryan, Lead Independent Director of the Board, said: “The board deliberated extensively on this matter. It recognizes the considerable value that Mark has contributed to HP over the past five years in establishing us as a leader in the industry.
“He has worked tirelessly to improve the value of HP, and we greatly appreciate his efforts. He is leaving this company in the hands of a very talented team of executives.”
While Lesjack, a 24-year company veteran, has taken up the position of CEO, HP has begun to search both inside and outside of the company for a permanent replacement.
It says there will not be any other changes to the structure of the company, however.