HP CEO resigns after sexual harassment probe

Hewlett-Packard CEO Mark Hurd is resigning after a probe of a sexual harassment claim filed against him by an HP contractor. Chief financial officer Cathie Lesjak will serve as interim CEO until a permanent successor is found.

A legal investigation of the contractor's claim concluded Hurd hadn't violated the company's sexual harassment policy, but did breach the its standards of business conduct. HP shares fell almost 10 percent after the announcement.

“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," Hurd said in a statement. "After a number of discussions with members of the board, I will move aside and the board will search for new leadership."

"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," he added, calling the company "exceptionally well positioned strategically."

A search committee has been formed to find a new chief executive; Lesjak has removed herself from consideration for the position.

“I accept the position of interim CEO with the clear goal to move the company forward in executing HP’s strategy for profitable growth. We have strong market momentum and our ability to execute is irrefutable as demonstrated by our Q3 preliminary results,” she said.

HP reported preliminary results for the fiscal third quarter; revenue rose 11 percent over one year ago to $30.7 billion.