HP CEO Quits After Sex-Harassment Complaint

August 6, 2010 8:52 PM EDT

HP Chief Executive Officer Mark Hurd has resigned in the face of a sexual-harassment investigation.

The company announced his resignation today, saying that Hurd decided with the board of directors to resign his positions effective immediately.

Chief Financial Officer Cathie Lesjak, 51, will take over Hurd's position while the board of directors decides on a course of action, though she took herself out of consideration for the CEO post. Lesjak has been CFO since 2007 and is a 24-year veteran of HP.

The sexual harassment complaint was brought by a former contractor to HP. It was investigated by both outside and company legal counsel under the direction of the company's board. Hurd had been CEO since 2005.

HP said the investigation found no violation of HP's sexual harassment policy, but did find violations of HP's "Standards of Business Conduct."

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In a prepared statement, Hurd said, "As the investigation progressed, I realized 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 and which have guided me throughout my career."

He also said, "This is a painful decision for me to make after five years at HP, but I believe it would be difficult for me to continue as an effective leader at HP and I believe this is the only decision the board and I could make at this time."

In the same statement, Robert Ryan, lead independent director of the Board, said, "The board deliberated extensively on this matter. It recognizes the considerable value that Mark has contributed to HP over the past five years in establishing us as a leader in the industry. He has worked tirelessly to improve the value of HP, and we greatly appreciate his efforts. He is leaving this company in the hands of a very talented team of executives."

This article is copyrighted by International Business Times, the business news leader