 |
Leo
Apotheker, CEO of Hewlett-Packard Co., speaks at a
media event in Beijing, June 29, 2011. (Credit: Reuters/China Daily) |
(Reuters) -
Hewlett Packard Co will pay ousted CEO Leo Apotheker nearly $10 million in
severance and bonuses and let him keep 156,000 restricted shares, a hefty
payout for an 11-month term that saw HP's share price dive 45 percent.
In
contrast, HP will pay new CEO Meg Whitman a base salary of just $1 per year.
She, however, has the option to buy 1.9 million of the company's shares and is
eligible for a performance bonus of $2.4 million in 2012, the company said in a
filing with the U.S. Securities and Exchange Commission.
Apotheker
-- fired this month after repeatedly slashing sales forecasts and angering
investors with a pricey acquisition of Autonomy -- gets a $7.2 million
severance payout and also a $2.4 million annual bonus under the company's 2005
"pay-for-results plan".
In
addition, he will be reimbursed for relocating to France or Belgium, and
compensated for any losses on the sale of his residence in California.
Whitman
joins a club of high-profile CEOs who have drawn the dollar-a-year salary,
which include Apple's Steve Jobs, Yahoo Inc founder Jerry Yang and Google
executives Larry Page, Eric Schmidt and Sergey Brin.
HP's shares
closed down 2.5 percent at $23.78 on Thursday on the New York Stock Exchange.
(Reporting
by Abhiram Nandakumar in Bangalore, editing by Bernard Orr)
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