Dear Visitor,

Our system has found that you are using an ad-blocking browser add-on.

We just wanted to let you know that our site content is, of course, available to you absolutely free of charge.

Our ads are the only way we have to be able to bring you the latest high-quality content, which is written by professional journalists, with the help of editors, graphic designers, and our site production and I.T. staff, as well as many other talented people who work around the clock for this site.

So, we ask you to add this site to your Ad Blocker’s "white list" or to simply disable your Ad Blocker while visiting this site.

Continue on this site freely
  HOME     MENU     SEARCH     NEWSLETTER    
CUSTOMER RELATIONSHIP MANAGEMENT NEWS. UPDATED ABOUT A MINUTE AGO.
You are here: Home / Business Briefing / SEC Probes Ex-HP CEO Mark Hurd
SEC Probes Ex-HP CEO Mark Hurd for Possible EDS Leak
SEC Probes Ex-HP CEO Mark Hurd for Possible EDS Leak
By Jennifer LeClaire / CRM Daily Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
DECEMBER
21
2010
Just when you thought the Hewlett-Packard drama had died down, regulators have begun investigating the circumstances surrounding Mark Hurd's sudden departure as president and CEO of HP.

The Wall Street Journal first reported the Securities and Exchange Commission's probe. The Journal cited anonymous sources saying the SEC is investigating claims that Hurd shared insider information with an ex-contractor before the company acquired Electronic Data Systems for $13.9 billion in 2008.

Hurd resigned suddenly in the wake of an investigation into his relationship with a former actress named Jodie Fisher, who accused Hurd of sexual harassment. A company investigation cleared Hurd of any wrongdoing with Fischer, but Hurd resigned, saying there were instances in which he "did not live up to the standards and principles of trust, respect and integrity" that he espoused at HP. Hurd is now a president at Oracle.

A Busy SEC

The SEC's investigation doesn't surprise Charles King, principal analyst at Pund-IT. Between Hurd's original $40 million sweetheart deal -- later reduced after shareholders screamed bloody murder -- and several resulting investor lawsuits, there's plenty for the SEC to investigate, he said.

"Additionally, as the melodrama around HP, Hurd and Jodie Fisher was spinning out, one rumor that appeared late in the day was that Hurd had spoken out of school to Fisher about the then-in-progress EDS acquisition," King said. "Such allegations are far more serious than the harassment and expense fudging Hurd was accused of, and, if correct, would be a natural target for the SEC."

No Worries for Shareholders

What about HP clients and shareholders? Should they be concerned? King doesn't think so, but then again it depends on whom or on what the probe focuses.

If the primary target is Hurd and allegations about leaking information about the EDS deal, King said, the company can note that it acted quickly and forcefully to rid itself of an obvious bad apple.

But if the SEC decides to look under the hood of Hurd's $40 million initial deal, King said, the HP board may come under fire. At this point, King said, the leak issue seems highest on the SEC radar.

Hurd's Possible Fate

If Hurd is found guilty of the leak, it could spell trouble for him. The most comparable recent situation is probably Bob Moffat, the former senior IBM executive who was found guilty of leaking inside information to a hedge-fund manager with whom he was reportedly having an affair. King pointed to Moffat's fate as a potential repercussion. Moffat is doing six months in jail for his infractions, which seems like a light sentence, but his career in IT is effectively over.

"If the SEC investigation bears similar results for Hurd, the finale will likely be similar -- though one could argue that telling tales to a former actress is less iniquitous than whispering sweet nothings to a hedge-fund manager," King said.

"Hurd hasn't been at Oracle long enough for the company to sustain a major business hit if the SEC probe results in prosecution and a guilty verdict. But if that's the case, [Oracle CEO] Larry Ellison's over-top-defense of Hurd and criticism of the HP board, plus his decision to place Hurd in so high-profile a position at Oracle, would have to be considered a major embarrassment by any reasonable measure."

Tell Us What You Think
Comment:

Name:

Larry:
Posted: 2010-12-21 @ 2:09pm PT
"Hurd resigned, saying there were instances in which he "did not live up to the standards and principles of trust, respect and integrity" that he espoused at HP. Hurd is now a president at Oracle." Hilarious!!! Oracle is where he belongs if that's his M.O.!

Like Us on FacebookFollow Us on Twitter
MORE IN BUSINESS BRIEFING
CRM DAILY
NEWSFACTOR NETWORK SITES
NEWSFACTOR SERVICES
© Copyright 2017 NewsFactor Network. All rights reserved. Member of Accuserve Ad Network.