The investigation, conducted by outside legal counsel and the company's general counsel and overseen by the board, found that Hurd did not violate HP's sexual harassment policy but he did violate HP's standards of business conduct, the company said.

Cathie Lesjak, HP's CFO, will serve as interim CEO while a search committee looks for a permanent replacement for Hurd. She will retain her CFO position and has asked not to be considered for the permanent position.

"As I step into the role as interim CEO, I've never had more confidence in the company's future," she said in a conference call about the announcement.

HP discovered the situation recently when outside legal counsel sent a letter to the company on behalf of the contractor on June 29. The next day, the board was notified and launched the investigation.

The investigation discovered that Hurd had a "close personal relationship" with a marketing contractor that he did not disclose to the board, Mike Holston, HP's general counsel said. The consultant does not wish to be named, he said.