So, one of Baylor University's most high-profile alumni in the business world is currently unemployed. Mark Hurd, at the request of HP's board of director's, resigned as CEO on Friday. Basically, the news stories say that he was accused by sexual harassment but no evidence of that was found; however, in the course of the investigation, it was discovered that he submitted some expense reports that were not entirely accurate. I have absolutely no knowledge about this situation. All I know is (1) what I have read from the media and (2) what is found in Mark Hurd's separation agreement that was publicly filed with the SEC on Friday late afternoon.
From what I've read, this is what I find so fascinating: while executives terminated for this type of offense typically get no severance, Mr. Hurd was able to negotiated an exit package that may be worth more than $35 million, including a cash payment of $12.2 million (the total value of the package will depend upon stock prices).
Now, why was Mr. Hurd able to get such a severance package? I don't know. I do know that In exchange for the huge severance payments, HP will get a couple things that they wouldn't get if they just fired him for cause: (1) Mr. Hurd agreed to waive all lawsuits he has against HP and (2) Mr. Hurd agreed to not disparage HP after he leaves. So, I'm just wondering out loud...why are those two things worth some $35 million to HP?
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