New HP CEO To Get $1 Annual Salary While Ousted CEO Walks Away With $13 Million
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Recently ousted Hewlett-Packard CEO Leo Apotheker will be walking away with more than $13 million, while incoming CEO Meg Whitman will be getting an annual salary of just $1.
Apotheker was ousted last week after the company’s stock lost more than half its value during his 11-month stint with the technology giant. He however will be walking away with $13.2 million in stock and cash.
Recently ousted Hewlett-Packard CEO Leo Apotheker will be walking away with more than $13 million, while incoming CEO Meg Whitman will be getting an annual salary of just $1.
Apotheker was ousted last week after the company’s stock lost more than half its value during his 11-month stint with the technology giant. He however will be walking away with $13.2 million in stock and cash.
According to a filing that HP made with the U.S. Securities and Exchange commission, Apotheker’s base salary was $1.2 million and he will be receiving a $7.2 million cash severance package. He will also receive an additional $2.4 million under a “Pay for Results” scheme and $3.6 million after accelerated vesting of stock options.
Under the agreement negotiated between Apotheker and HP, HP would also be paying for German-born Apotheker’s (and his family’s) move back to Belgium or France, where he had lived after serving as the CEO of a German software company. The company has also agreed to reimburse up to $300,000 for any loss that he might incur from the sale of his $7 million home in Atherton.
On the other hand, the compensation package for incoming CEO Meg Whitman has been disclosed, and she will be getting a base salary of $1 per year. Under her salary package, Whitman could earn a bonus of up to $6 million annually. Whitman, though, can afford a paltry base salary. According to Forbes magazine’s latest rankings, she is worth about $1.3 billion, a fortune she amassed during her time with eBay.
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Whitman will be joining a group of CEOs, such as Google’s Larry Page and Apple’s Steve Jobs, who have insisted at capping their salaries at $1.
Related: Nasdaq-100 Futures Down, Samsung Shares Up As Steve Jobs Quits Apple
