HP Files SEC Report Detailing New CEO's Compensation Package

By Chris Preimesberger  |  Posted 2011-02-03 Print this article Print

Former SAP executive Leo Apotheker, now in his fourth month as HP's CEO, has a package that rivals that of superstar athletes and movie stars.

Hewlett-Packard filed a regulatory report Feb. 1 with the Security and Exchange Commission detailing the compensation package it has arranged for its new CEO, former SAP executive Leo Apotheker-a package that rivals that of superstar athletes and movie stars.

Apotheker, who started his new job in November 2010 following a sexual harassment and cover-up scandal that resulted in the ouster of former CEO Mark Hurd , has agreed to a yearly salary $1.2 million, a $4 million cash signing bonus, and $4.6 million in relocation costs and reimbursement for non-compete payments from SAP.

Apotheker is in the process of moving his family from France to the San Francisco Bay Area.

There's more. HP also gave its new CEO a large chunk of restricted stock-$38 million worth-in September. Depending on HP's performance over the time he owns the stock, Apotheker might actually bank more than that. Or he could get less, if the stock slips in price.

The ouster of Hurd by HP is being investigated by four new members of the HP board. The move was sparked by a shareholder lawsuit after Hurd was forced to resign Aug. 6, 2010, following sexual-harassment allegations by former HP contractor Jodie Fisher.

Hurd is considered an excellent manager who in five years led HP to become the world's largest IT company, surpassing IBM.

Hurd and Fisher settled their issues out of court, with both people claiming that, in fact, there was no sexual relationship or harassment involved. No evidence of sexual misconduct was ever brought to the fore.

Apotheker was also in the news Feb. 2 when he told the BCC at the Davos World Economic Forum that "what's happening is probably the biggest revolution in the history of IT. The Internet is going totally mobile, the bandwidth is there ... so many technologies are converging, and HP is the one company that can put it all together. We want to be the leader in this."

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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