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Mark Hurd

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Mark Vincent Hurd
Born (1957-01-01) January 1, 1957 (age 67)
Flushing, New York, USA
EducationBaylor University
SpousePaula Kalupa

Mark Vincent Hurd (born January 1, 1957) is co-president, director, and board member of Oracle Corporation, and the past chairman, chief executive officer, and president of Hewlett-Packard. At Hewlett-Packard, Hurd succeeded CFO Robert Wayman, who served as interim CEO from February 10, 2005 to March 28, 2005, after former CEO Carly Fiorina was forced by the board to resign.[1] On September 22, 2006, Hurd succeeded Patricia C. Dunn as chairman after she resigned after the pretexting controversy.[2] Hurd resigned his positions at HP on August 6, 2010, after an internal investigation uncovered expense-account irregularities.[3]

Education

Hurd graduated in 1979 with a bachelor of business administration from Baylor University, where he played tennis.[4]

Early career

Hurd spent 25 years at NCR Corporation, culminating in a two-year tenure as chief executive officer and president. His leadership was marked by successful efforts to improve operating efficiency, bolster the product line and build strong leadership. In the fiscal year of 2004, NCR generated revenue of $6.0 billion, up 7 percent from a year earlier, and net income rose nearly fivefold to $290 million.[citation needed]

Hurd was named president of NCR in 2001 and was given additional responsibilities as chief operating officer in 2002. Hurd began working for NCR as a junior salesman in San Antonio in 1980, and subsequently held a variety of positions in general management, operations, and sales and marketing. He also served as head of the company's Teradata data-warehousing division for three years.[5]

Hurd is a member of the Technology CEO Council, a coalition of chairmen and chief executive officers of IT companies, which develops and advocates public policy positions on technology and trade.[citation needed] Hurd has since been removed from mention on the official website of the Council, and is conspicuously missing from the Council's listed members.[6]

Hurd served on the board of directors of News Corporation until 2010, but was not renominated to his seat following the Jodie Fisher scandal.[7][8]

Hewlett-Packard (2005–2010)

Management style

After the board forced Chairman and CEO Carly Fiorina to resign in January 2005, CFO Robert P. Wayman became interim CEO for several months. Hurd was appointed permanent CEO and also held the title of President, a post which was not used by several of his predecessors (Michael Capellas was President of HP briefly in 2002 after its merger with Compaq). Hurd was also elected to the board of directors but unlike previous CEOs, he initially was not chairman of the board. On September 22, 2006, Hurd succeeded Patricia C. Dunn as chairman after she resigned after the pretexting controversy.[2]

Under his leadership, the company has been the first in the sale of desktop computers since 2007, and laptop computers since 2006. In 2008, it also increased its market share in inkjet and laser printers to 46% and 50.5%, respectively.[5] Hurd said that he gets up every day at 4:45 a.m. in California without an alarm clock because competitors on the east coast are already awake.[5]

Hurd has a reputation for aggressive cost-cutting. He laid off 15,200 workers — 10% of the workforce — shortly after becoming CEO. Other cost-cutting includes reducing the IT department from 19,000 to 8,000, reducing the number of software applications that HP uses from 6,000 to 1,500, and consolidating HP's 85 data centers to 6. In the recent recession, Hurd imposed a 5% pay cut on all employees and removed many benefits. Hurd himself took a pay cut of 20% in his base salary, although the compensation committee increased his bonus by the same amount. Following the acquisition of EDS, Hurd instructed that all EDS employees should have their salaries adjusted to match the salaries of their HP counterparts, with pay cuts of as much as 20%. He also promised that those employees below scale would see their payscales adjusted through an internal process that never materialized.

Hurd forecast that in 2009, HP's sales could drop as much as 5% in the midst of the recession, but its profit would increase by nearly 6%.[5]

In 2009, Hurd was considered one of the "TopGun CEOs" by Brendan Wood International, an advisory agency.[9][10]

Resignation

On August 6, 2010, he resigned from all of his positions at HP, following discovery of inappropriate conduct in an investigation into a claim of sexual harassment made by former reality TV actress Jodie Fisher.[11][12][13] The probe concluded that the company's sexual-harassment policy was not violated, but that its standards of business conduct were.[3][12] Hurd said he "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 added that he believed it would be "difficult to continue as an effective leader at HP."[3] In exchange for releasing HP from future litigation, Hurd received $12.2 million in severance, plus vested options and restricted stock for an estimated total of $34.6 million.[14][15]

Oracle Corporation CEO Larry Ellison, a close friend of Hurd who has also been the object of sexual harassment claims,[16][17] sent an e-mail to the New York Times saying "the HP Board just made the worst personnel decision since the idiots on the Apple Board fired Steve Jobs many years ago. That decision nearly destroyed Apple and would have if Steve hadn't come back and saved them. HP had a long list of failed CEOs until they hired Mark who has spent the last five years doing a brilliant job reviving HP to its former greatness".[18]

Compensation

In 2008, Hurd's total compensation was $33,952,237, including a base salary of $1,450,000, stock award of $7,907,660, cash bonus of $23,931,882, and $662,695 in perquisites and other compensation.[19] It was the largest bonus of any CEO in 2008, although Hurd himself implemented a wage freeze on the employees.[20]

In 2009, Hurd made a total of $24,201,448, including a base salary of $1,268,750, stock award of $6,648,092, cash bonus of $15,809,414 and $475,192 in benefits and other compensation.[21] Hurd said he believes in what he calls "pay for performance", such that employees have a substantial part of their salaries "at-risk", which gets paid only when the company's performance measures up.

Lawsuit

A shareholder derivative lawsuit has been filed following the imbroglio over Hurd's departure. The suit seeks unspecified damages and changes to HP's corporate governance. It claims that HP lost "significant credibility" due to the controversy and a loss of $9 billion in market capitalization when shares began trading the Monday after Hurd's resignation, and that his severance package could have been significantly smaller if HP's board fired him for cause. The suit was filed on behalf of shareholders by Brockton Contributory Retirement System against Hurd, and HP's board members.[22]

Compensation for Mark Hurd was based on how many people he could fire and destroy their lives - taking their income for himself; it essentially was his bonus plan, making the bottom line look good even though after buying every company he could and laying the people off with his "merge-n-purge" activities. Mark Hurd was a proven failure as HP Stock could never stay above $40 per share. So they Board found an excuse to get rid of him.

Oracle Corporation (2010–present)

On September 6, 2010 Hurd was named co-president and member of the board of Oracle Corporation by CEO Larry Ellison. Hurd succeeded Charles Phillips. Safra A. Catz remains the other Oracle co-president.

Bibliography

References

  1. ^ "HP Chairman and CEO Carly Fiorina Steps Down" (Press release). Hewlett-Packard. 2005-02-09.
  2. ^ a b "Mark Hurd Named HP Chairman, In Addition to His Roles as President and CEO" (Press release). Hewlett-Packard. 2006-09-22.
  3. ^ a b c Jordan Robertson and Rachel Metz (2010-08-06). "HP CEO Mark Hurd Resigns After Sexual-Harassment Probe". Huffington Post.
  4. ^ Pimentel, Benjamin (March 30, 2005). "Mark Hurd has earned a name at Hewlett-Packard". The San Francisco Chronicle.
  5. ^ a b c d Lashinsky, Adam (2009-03-03). "Mark Hurd's moment". Fortune. Retrieved 2009-07-15. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  6. ^ http://www.techceocouncil.org/about-the-council/who-we-are
  7. ^ Adegoke, Yinka (August 31, 2010). "UPDATE 2-Ex-HP CEO Hurd leaving News Corp board". Reuters.
  8. ^ Bercivici, Jeff (August 31, 2010). "Mark Hurd Stepping Down from News Corp. Board". Daily Finance.
  9. ^ The Market's Best Managers - Forbes.com, Forbes.com
  10. ^ Brendan Wood International Announces 24 TopGun CEOs in the US, Reuters.com
  11. ^ Actress Is Identified in Hewlett-Packard Scandal, NYtimes.com
  12. ^ a b Connie Guglielmo, Ian King, and Aaron Ricadela (2010-08-07). "HP's Mark Hurd Resigns After Sexual-Harassment Probe". Bloomberg News.{{cite news}}: CS1 maint: multiple names: authors list (link)
  13. ^ "HP CEO Mark Hurd Resigns; CFO Cathie Lesjak Appointed Interim CEO; HP Announces Preliminary Results and Raises Full-year Outlook" (Press release). Hewlett-Packard. 2010-08-06.
  14. ^ [1]
  15. ^ "HP's Hurd latest CEO to get lucrative exit payout". Reuters. August 9, 2010. Retrieved August 10, 2010.
  16. ^ The Washington Post. September 16, 1998 http://www.washingtonpost.com/wp-srv/politics/special/clinton/stories/punishment091698.htm. {{cite news}}: Missing or empty |title= (help)
  17. ^ Elmer-DeWitt, Philip (August 10, 2010). "(Updated) Mark Hurd, Larry Ellison, Steve Jobs?". CNN.
  18. ^ Vance, Ashlee (August 9, 2010). "Oracle Chief Faults H.P. Board for Forcing Hurd's Resignation". The New York Times.
  19. ^ Darlin, Damon. "Times Topics: Mark V. Hurd". The New York Times. Retrieved 2009-07-15. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  20. ^ Jones, Kathryn (April 5, 2009). "The Pay at the Top". The New York Times. Retrieved 2009-07-15. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  21. ^ 2009 CEO Compensation Data for Mark V. Hurd, Equilar
  22. ^ "HP shareholders file suit over CEO's exit". The Washington Post. August 14, 2010.
Business positions
Preceded by Chairman of Hewlett-Packard
2006–2010 		Succeeded by
Preceded by Chief Executive Officer of Hewlett-Packard
2005–2010 		Succeeded by
Preceded by President of Hewlett-Packard
2005–2010 		Succeeded by
vacant
Preceded by co-President of Oracle Corporation
(along with Safra A. Catz)
2010–present 		Succeeded by
incumbent

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