WSJ Reports From Behind-the-Scenes of the HP/Mark Hurd Imbroglio

Ben Worthen and Joann S. Lublin, reporting for the WSJ, have sources from both sides:

According to the person familiar with the board’s thinking, before the Hurd-Fisher settlement, H-P had seen enough evidence of misconduct by Mr. Hurd for there to be a sense among directors that he was no longer fit to serve as CEO. The alleged misconduct was said to include failing to disclose a personal relationship with an H-P contractor—something H-P defines as a conflict of interest—and filing expense reports the company determined were intended to conceal the relationship.

A person close to Mr. Hurd said that he didn’t conceal a relationship, he didn’t fill out expense accounts himself, and Ms. Fisher’s name was on some of them.

And the board apparently searched Hurd’s computer:

As the investigation evolved, said a person close to it, the board came to believe that the CEO had a personal relationship with Ms. Fisher, even if not sexual. For instance, the investigation found that Mr. Hurd had looked at clips from racy films featuring Ms. Fisher, a former actress, this person said. Someone familiar with Mr. Hurd’s thinking said he just did a Google search of 10 minutes or so.

★ Monday, 16 August 2010