• Video
• Image

HP CEO resigns amid sex scandal claims

Hewlett-Packard Company Chairman and Chief Executive Officer Mark Hurd in a file photo / AP file photo Source: AP

HP, one of the world's largest information technology companies, said overnight that Mr Hurd decided to leave after the investigation into a sexual harassment claim made against him and the company by a former HP contractor.

The probe concludes that the company's sexual harassment policy was not violated, but that its standards of business conduct were.

The probe revealed that Mr Hurd had filed "numerous" inaccurate expense reports, The Wall Street Journal reported.

HP said some payments made to the contractor were "questionable".

The resignation of HP's CEO comes after the CEO of department store David Jones resigned under a cloud two months ago.

David Jones CEO Mark McInnes resigned on June 18 after he admitted to behaving "in a manner unbecoming of a chief executive to a female staff member" at two recent company functions.

The claims are now the subject of an unprecedented $37 million civil suit against David Jones, its directors and Mr McInnes.

HP CEO: difficult to continue as leader

In a statement, Mr Hurd said that during the investigation he "realised 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".

He added that he believed it would be "difficult to continue as an effective leader at HP".

Mr Hurd and Robert Ryan, HP's lead independent board member, stressed that Mr Hurd's departure has nothing to do with the company's financial health.

The technology company named Chief Financial Officer Cathie Lesjak as its interim CEO.

HP said a board committee will search for a new CEO.

Ms Lesjak, who has been at HP for 24 years, will continue to act as CFO. She decided not to be considered for the position of permanent CEO, the company said.

Also overnight, HP issued preliminary results for its fiscal third quarter, which came in slightly above analyst expectations.

HP said its revenue rose 11 per cent from last year to $US30.7 billion ($33.52 billion), while analysts were looking for $US30 billion ($32.75 billion) in revenue.