Lawsuit over HP's Mark Hurd payoff is dismissed

A COURT has dismissed a lawsuit that took issue with HP's decision to pay its departing CEO Mark Hurd some $40m.

Hurd was fired from HP in 2010 under a cloud of scandal, but still wandered away from the firm with the massive payout. That led shareholder Lawrence Zucker to file a lawsuit against the company accusing it of wasting money.

Zucker complained that the payout was far too high, especially when HP probably could have got away with just firing Hurd and being done with him.

However, according to Reuters the court disagreed, finding that if HP had not been so generous it might have struggled to find a replacement. Judge Donald Parsons conceded that some people might find the payout "altogether distasteful", but found that it probably wasn't excessive, given the former CEO's prior service.

We have asked HP for comment. µ