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Disgraced H-P CEO to Pick Up $28M

Despite resigning in the midst of an investigation over a relationship with a female contractor, HP CEO Mark Hurd, who was let go on Friday, will reportedly collect some $28 million on his way out the door. That said, it might still come to him as a disappointment since he was in negotiations for a new contract worth around $100 million. During his five-year tenure, HP’s stock price had doubled and, over that period, the company collected more revenue than any of its technology rivals. Hurd, a married father of two, was ousted Friday after a company investigation revealed that he had submitted fake expense reports and other documents to cover up a relationship with a contractor and paid her for work she never did. The expense reports in question totaled around $20,000, a person close to the case said. On Friday, the 53-year-old admitted "instances in which I did not live up to the standards and principles of trust, respect and integrity that I have espoused at H-P." But there may be more to the story. Attorney Gloria Allred, hired by the woman in the case, said, "There was no affair and no intimate sexual relationship," between the two parties. Details on the relationship are scarce, but The Wall Street Journal reports that in August 2007 Hurd personally flew to L.A. to interview the woman for a marketing position, which is unusual for a CEO. The next month, he flew to Denver to interview her again at the company’s expense. The contractor was paid between $1,000 and $5,000 to do H-P events for the next two years; during that time, Hurd frequently met with the woman and expensed dinners with her, but the name entered on expense reports was not the contractor’s. One person alleges that the contractor was paid for events that never happened. H-P stock dropped 10 percent on Friday following the news.