The most popular search topic on Google today was a name that few people outside the business world had heard of — Hewlett-Packard CEO Mark Hurd.

Pundits around the nation are weighing in on the news that Hurd, who is credited for H.P.'s resurgence the past five years, resigned amid allegations of sexual harassment.

The news originally came down Friday afternoon after much of the business community had turned off their collective computers. Hurd resigned following an H.P. investigation that determined there was no violation of the company's sexual harassment policy, but did find violations of H.P.'s standards of business conduct, according to a company press release.

(What is it about Fridays in August? Wasn't it only two years ago that John Edwards admitted his illicit affair with Rielle Hunter? )

We learned that Hurd had padded his expense report by $20,000 and failed to disclose the existence of a close personal relationship with the contractor, a C-list actress named Jodie Fisher (not to be confused with A-list actress Jodie Foster). Fisher, 50, was born in Dallas and is a graduate of Texas Tech University. Her film credits include a number of softcore adult films of the late-night HBO variety — Sheer Passion, Body of Influence, and Intimate Obsession.

Although Hurd denied that the relationship was sexual in nature, he has privately settled his differences with her. Hurd's severance package is estimated to be in the $28 million range.

Hurd's resignation has unleashed a torrent of second-guessing whether H.P.'s board made the right decision. H.P. stock, which doubled during Hurd's tenure, fell 8 percent Monday.

As the founder of an Houston executive search firm, I had have had the opportunity to work closely with boards of directors and CEOs. My take-from the mundane to the bigger issues:

Jodie Fisher's regret

On Sunday night Jodie Fisher issued a statement through her attorney Gloria Allred: "I was surprised and saddened that Mark Hurd lost his job over this. That was never my intention.... I wish Mark, his family and H.P. the best."

Isn't that a little like saying "I am sorry I shot you but hope you have a great week?" What did Ms. Fisher think would happen by filing suit against the CEO of a company that has zero tolerance for ethics violations?

What is sexual harassment anyway? And is there sexual harassment if there is no sexual relationship?

This story has shown that no one can give a black/white definition of sexual harassment but we all think we would recognize it if we saw it or were given examples. Most pundits agree that companies should not have a sexually charged workplace and should have well defined sexual harassment policies. But when push comes to shove, there are shades of gray.

This is especially true when an executive has an admitted "close personal relationship." Do companies have a higher risk of being sued if they seek to terminate someone with whom an executive has a personal relationship?

What was Hurd thinking?

Most people painted Mark Hurd as a Midwestern stand-up type of guy. How could someone who makes so much money fudge on a measley $20,000 in expenses? My three explanations are: Embarrassment, entitlement and isolation.

Most of us recognize that the mistake is not what causes the problem; the cover-up of the mistake is always what snares the culprit. Is it possible the relationship had crossed the line and Hurd was embarrassed and thought he could cover it up?

Our corporate culture elevates CEOs to rock star status with matching benefits. Hurd's compensation package included meals and use of the H.P. jet for his family, as well as a mark-up to cover the taxes on such perks. Living in this type of bubble could easily blur the line between a benefit and an entitlement.

Many CEOs are put on a pedestal. Aside from the board, few colleagues question a CEO's actions on issues that could be characterized as "personal."

H.P. Board — Right or Wrong?

Although some companies might let a small expense violation slide, H.P. would not and could not. In 2006, H.P. board chairwoman Patricia Dunn resigned and faced possible criminal charges after it was discovered that she hired outside contractors to spy on board members and journalists. As a result, H.P. took the charges against Hurd more seriously.

Some would argue that given the shareholder value Hurd has added, he should have been allowed to keep his job after making restitution. Others argue it is not the amount, but leadership and integrity by example that is at risk.

And face it: Lying on an expense account is stealing. No shades of gray there.

Do you want to own stock in a Fortune 100 company knowing that the CEO does not have a strong ethical compass? If it is acceptable for a CEO to lie on his/her expense account with only restitution as punishment, then others will follow suit. A company's standards of ethics and integrity starts at the top.

Indeed, it is tough to oust a star performer. But doing the right thing is not always easy.

Jane Howze is founder and partner of The Alexander Group.