Former HP CEO Apotheker to get more than $US9.6 million

A regulatory filing shows what HP will pay its outgoing and incoming CEOs

Outgoing Hewlett-Packard CEO, Leo Apotheker, will get a severance payment of $US7.2 million, plus a $2.4 million performance bonus and additional stock benefits, according to documents filed with the US Securities and Exchange Commission on Thursday.

Apotheker was recently ousted from the top post at HP after spending just 11 months on the job. Meg Whitman, the former CEO of eBay, has taken over. She will receive a base salary of just $1 per year, the regulatory filing shows.

Apotheker made several decisions during his tenure that drew criticism, including one to spin off HP's PC division, which it announced before it had found a buyer. HP missed its financial targets for the past three quarters and its stock dropped by nearly half while Apotheker was CEO.

In addition to the severance and bonus payments, he was awarded accelerated vesting of stock grants worth $3.5 million, according to the filing. He is also eligible for funds to relocate back to France or Belgium, and up to $300,000 for any losses he incurs selling his California home.

When Apotheker signed on to the job, he agreed to a base salary of $1.2 million and an annual bonus of 200 percent to 500 percent of his salary. He received hundreds of thousands of shares under various stock plans.

Apotheker also received a $4 million signing bonus and an additional $4.6 million for relocation expenses and other payments.

HP also revealed Whitman's compensation package on Thursday. Like some other prominent CEOs, she will receive a base annual salary of $1. She will also get the option to buy more than 1.9 million shares of HP stock, many of which vest only if the value of the stock rises considerably. Whitman's bonus for 2012 will be between $2.4 million and $6 million.

At the time Apotheker took over, HP had just agreed to pay Mark Hurd, its previous CEO, more than $12 million. He was forced out following accusations of sexual harassment from a former marketing consultant for the company. His payout was about half of that received by Carly Fiorina, another embattled HP CEO, who got more than $21 million when she was forced out in 2005.

Nancy Gohring covers mobile phones and cloud computing for The IDG News Service. Follow Nancy on Twitter at @idgnancy. Nancy's email address is Nancy_Gohring@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesHewlett-PackardpersonnelLeo ApothekerSEC FilingsCarly FiorinaMeg Whitman

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?