Hewlett-Packard and its former CEO, Mark Hurd, may have finally ended their bitter dispute over Hurd’s move to Oracle, but the case still provides plenty of lessons for board directors and corporate legal departments on the limits of non-compete and confidentiality agreements. On Sept. 20, the ousted CEO agreed to give up about $13 million in restricted stock and promised to protect HP’s confidential information.
Hurd, of course, was fired on Aug. 6 amid allegations of sexual harassment and improper recording of business expenses. HP’s arch-rival Oracle Corp. then announced on Sept. 6 that it was hiring Hurd as co-president. One day later HP slapped Hurd with a lawsuit, alleging that the very nature of his employment means that he “cannot perform his duties for Oracle without necessarily using and disclosing HP’s trade secrets and confidential information to others.”
