HP planned to axe Hurd before harassment settlement

The departure of HP chief executive Mark Hurd seems to have been murkier than previously thought, according to reports.

Insiders close to the company have claimed that the HP board moved quickly to oust Hurd while he was working on a settlement with former HP contractor Jodie Fisher over sexual harassment allegations.

Fisher had alleged that offers of contractual work had ceased after she refused sexual advances from Hurd.

As details began to emerge, along with evidence of expenses tampering, the board set about the process of removing Hurd before he reached his own private settlement.

By timing their actions correctly, it is claimed that the HP board was able to distance itself from any investigations over the harassment claims.

This was not an easy decision, according to a report in The Financial Times, which quoted insiders as saying that board members were frustrated by the solution, and that some apparently wanted to look into it.

Typically, the parties have different views on exactly what happened, but both wished to limit their involvement with the harassment claims.

"At a meeting the board decided to follow the recommendation of its lawyers and a public relations firm and disclose that the harassment claim had been lodged. Mr Hurd argued that the matter should be kept quiet, adding to the board's determination that he should leave," said the report.

The HP board has already started its search for a replacement and has appointed executive head hunting firm Spencer Stuart.

"The Spencer Stuart team will be instrumental in helping us identify a chief executive with the right leadership qualities to move HP into the next phase of growth," said John Hammergren, chairman of the HP search committee.

"We look forward to conducting a swift, thorough and confidential search process, and we will have no further comment until we are ready to announce our new chief executive."