The Cautionary
Posts
Greed-to-Grief, No. 26

Greed-to-Grief, No. 26

CEO's disciplined approach breaks down when a woman is involved

George Pillari
November 06, 2025

To listen to this story, click Listen Online at the top of the page.

You can find previous stories here.

By 2005, Hewlett-Packard was in crisis. The “let’s take big swings” era of CEO Carly Fiorina had ended in failure. HP’s mega-acquisition of personal computer maker Compaq had been a disaster, and the once-proud company and symbol of all that was good about technology and innovation was underperforming.

HP's board desperately needed someone who could restore operational discipline and investor confidence. They turned to Mark Hurd.

Former HP CEO Mark Hiurd

Hurd's appointment was widely celebrated by Wall Street and the business community. He was a proven operator with a track record of turning companies around. Unlike his predecessor, who had emphasized vision and transformation, Hurd promised execution and discipline. It was time for HP to get back to basics.

The market responded positively, and HP's stock price rose on the news of his hiring, and analysts praised the board's choice.

In his first years at HP, Hurd delivered spectacularly. He implemented massive cost-cutting measures, eliminated redundancies, streamlined operations, and focused the company on core business fundamentals.

❝

Hurd was not interested in flashy corporate initiatives or grand strategic visions. Hurd demanded efficiency, accountability, and results.

Under Hurd's leadership, HP's financial performance improved dramatically. Revenues and profits grew, margins expanded, and the stock price rose substantially during his tenure. Hurd became a celebrated figure in business circles, frequently appearing on lists of the best CEOs and most admired executives.

He was held up as a model of effective leadership and operational excellence.

What made Hurd particularly effective was his willingness to make tough decisions that others wouldn't. He cut costs that others considered untouchable, eliminated entire business units that weren't meeting his profitability standards, and refused to tolerate mediocre performance at any level of the organization. Hurd ruled HP with an iron fist, and investors loved him for it.

However, beneath the impressive financial results, a different picture was emerging at HP. Hurd's management style, while operationally effective, created a culture of fear and intimidation.

Employees reported feeling anxious, undervalued, and constantly under threat of layoffs or demotion. Hurd was known for brutal performance reviews, for public criticism of employees, and for an atmosphere of constant cost-cutting pressure.

There were also early warning signs about Hurd's personal conduct. Stories circulated within HP about inappropriate behavior, off-color remarks, and an aggressive management approach that sometimes-crossed professional lines.

However, during the early years of his tenure when financial results were strong, these concerns were largely overlooked or dismissed. Board members and investors were primarily focused on stock performance, and Hurd was delivering that in abundance.

When things are going well and people are making money, I like to say, “Something was broken, but nobody dared fix it.”

Five years into his celebrated tenure at HP, everything changed. Hurd was forced to resign as CEO amid allegations of sexual harassment. The circumstances surrounding his departure were dramatic and shocking to the business world.

An internal investigation allegedly substantiated claims that Hurd had engaged in inappropriate behavior toward female colleagues and contractors.

What was particularly striking about this fall was its sudden nature. Hurd had been named as one of the best CEOs in America just weeks before. The allegations raised questions about what had been happening at HP during his tenure and why earlier concerns had not been addressed.

It became clear that operational excellence and financial performance had overshadowed serious questions about workplace conduct and corporate culture.

Hurd appeared to be obsessed with outside consultant Jodie Fisher. Fisher made claims against Hurd and HP that included Hurd luring her to hotel room under false pretense, touching her inappropriately, and practically stalking her.

Consultant Jodie Fisher, who was once a B-movie actress

As with most sexual harassment claims, there was a “he said-she said” dynamic that makes these cases difficult to prove.

I have to believe there was more to this story that has never been made public. It just does not add up, especially since Hurd reached a financial settlement with Fisher and Fisher walked back some, but not all, of her allegations.

But the investigation found something else: $20,000 of expenses that Hurd charged the company for dinners and outings with Fisher.

The guy made $30 million a year and was tripped up by pocket money he spent chasing a woman who rejected the all-powerful CEO and married father of two girls. (Hurd plausibly claimed that his assistant erroneously included the personal expenses on his expense report and offered to repay the company.)

Despite the scandal and allegations, Hurd negotiated a monster severance package of approximately $40 million. This massive payout, despite his departure in disgrace over misconduct allegations, became enormously controversial.

Shortly after his dismissal from HP, Hurd was hired as co-president of cross-town rival technology behemoth Oracle.

Key Takeaways

Did the HP board handle the Hurd matter properly? Or were some some board members unhappy with Hurd and jumped at the first chance to run him out of the company?
Why would Hurd place himself in harm’s way like he did? Surely, he had to know that inviting Fisher to his hotel room could not ever work out positively for his career and his family.
Even level-headed corporate titans behave impulsively.

Things I think about

The Meteor Crater in Arizona was created by the impact of a meteorite with a diameter of about 100 feet. The crater is almost a mile wide and more than 500 feet deep.