HP files against former CEO Hurd over Oracle Hire | webOS Nation
 
 

HP files against former CEO Hurd over Oracle Hire 20

by Dieter Bohn Tue, 07 Sep 2010 3:55 pm EDT

 

Oracle's CEO may have thought he was doing his pal Mark Hurd a solid by hiring him on as Co-President after HP dumped him, but HP isn't taking too kindly to it. They've filed a civil complaint against Hurd, arguing that there's no way that the ex-CEO could work for Oracle without disclosing the trade secrets he has picked up at HP. The two companies are direct competitors, after all, and HP also notes that they weren't exactly stingy with his severance package:

Despite being paid millions of dollars in cash, stock and stock options in exchange for Hurd’s agreements to protect HP’s trade secrets and confidential information during his employment and following his departure from his positions at HP as Chairman of the Board, Chief Executive Officer, and President, HP is informed and believes and thereon alleges that Hurd has put HP’s most valuable trade secrets and confidential information in peril. Hurd accepted positions with Oracle Corporation (“Oracle”), a competitor of HP, yesterday as its President and as a member of its Board of Directors. In his new positions, Hurd will be in a situation in which he cannot perform his duties for Oracle without necessarily using and disclosing HP’s trade secrets and confidential information to others.

Who's got popcorn?

Source: HP Data Central

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20 Comments

Snap!

(And I do, of course.)

what about filing against Apple and Google for all the palm patent violation?

nomnomnomnom

As George Carlin so eloquently put it....

"Everybody knows by now, all businessmen are completely full of sh*t. Just the worst kind of low-life, criminal c*cksuckers you could ever want to run in to.

A f*ckin' piece of sh*t businessman...

And the proof of it is, they don't even trust each other: when a businessman sits down to negotiate a deal, the first thing he does, is to automatically assume that the other guy is a complete lying prick who's trying to f*ck him out of his money. So he's gotta do everything he can to f*ck the other guy a little bit faster, and a little bit harder... and he's gotta do it with a big smile on his face.

You know that big bullsh*t businessman smile?

+1 on the Carlin statement!

told you this sex offender is just not worth it

Hmm, good luck with this.

swing and a miss

I love you HP but come on. This is just a way for you to get back some of the money.

Actually, I think HP has a pretty strong case here. If he signed a non-disclosure agreement or a non-compete agreement, there's no way he can perform as the president of a direct competitor. He can't erase his HP knowledge from his brain, so there will always be an inherent conflict of interest. There's no reliable way to determine, "What would I do if I didn't know..." Plus, it's now his job to do what's best for Oracle. If he ignores what he knows about HP, he can't do that. There's no way he can be loyal to both sides, short of that little brain-eraser device from Men In Black.

Non-competes are illegal in California which is why they are going the route of a filing a civil complaint.

Thanks for the info. I just saw that in a couple articles, so that definitely changes things. (Actually, they're not illegal, just unenforceable.)

Hurd's actions seem a bit questionable, but on further reflection, I think HP would be much better served by focusing their energy on innovating like crazy to make his knowledge irrelevant and obsolete.

Maybe he really doesn't know anything about HP. He was too busy thinking about sex while there.

Thats what I do while at work. Who doesn't?

Basically, as vertically integrated as HP is , this guy can't work in Tech. There is no way he can do the same job for the competition and not disclose trade secrets. Even if non-competes are questionable, non-disclosure agreements will hold up.

So since it appears that his NDA was a term of his severance and not his employment; i.e. the agreement was reached after they decided to terminate him and not a condition of employment before or during his tenure,I think he's in violation.. again..

The part that makes me *owl-blink* and "Uh??" is that Oracle would hire him in the first place. I mean what does it say about them that they would hire the guy who just got fired for sexual harassment and creative financial reporting (yes it's only an expense report, but still).... They're just begging for additional SEC scrutiny during yearly SOX audit

Larry Ellison was extremely vocal and displeased that they let Hurd go. He is a big fan of Hurd. What Hurd did wrong was small potatoes in the world of CEO's....

He signed an NDA the day that his original employment offer was accepted. Nobody goes into tech without an NDA. I've signed multiple NDAs over the years and I've never been in a management position. The higher the level, the more common and stringent the NDA.

HP fired Hurd. Insisted he had to go, despite Hurd attempting to "make it right". Once you show someone the door, you have no control over the guy. Unless there is a non-compete we don't know about (and those never hold up in court).
I think it's incredibly naive for HP to think he was gonna go run IHOP or Pep Boys. Where did you realistically think he was going to go?
Lastly, I believe history will show that Hurd wasn't a great CEO, just a very frugal one. Just my 2 cents....

Not to the competition. He is more than welcome to be CEO of IHOP or Pep Boys...

As mentioned above, non-compete agreements are not valid in California as a matter of statutory law. But non-competes are routinely held up in courts in other states such as Maryland.