March 29, 2005 5:04 PM PST
Hefty pay package for HP's new CEO
According to documents filed late Tuesday with the Securities and Exchange Commission, HP's new CEO will receive 700,000 HP stock options and stand to earn tens of millions of dollars more as part of short-term and long-term bonus programs. The options will vest over a four-year period.
The 48-year-old executive will be given an additional 400,000 stock options and 450,000 shares of restricted stock to make up for the equity compensation he gave up when leaving NCR. The stock will vest over three years. The restricted shares alone have a value of more than $8 million.
Hurd, who became NCR's top executive in March 2003, took home roughly $2 million in salary and bonuses last year at NCR, up from about $1.5 million the prior year, according to NCR's most recent proxy statement.
Hurd will also be given a $2.75 million "relocation allowance" in moving from NCR's Dayton, Ohio, headquarters.
Among more minor benefits spelled out in the pact are Hurd's allotment of time off: He is to get no less than five weeks of paid time off each year. In addition, he is entitled to other benefits given to HP executives, such as financial counseling and executive physicals.
Hurd's employment contract also outlines what should happen if things don't work out at the computer maker. According to his contract, Hurd stands to receive a one-time cash payment equal to 2.5 times Hurd's then-current base salary plus his target bonus amount. Hurd would also benefit from continued health benefits, the vesting of all stock options and partial vesting of restricted stock.
Former HP CEO Carly Fiorina received more than $21 million in severance when she left HP earlier this year. In fiscal 2004, Fiorina received $1.4 million in salary and $1.57 million in bonuses. The year before, Fiorina made $1.24 million in salary and $2.1 million in bonus.
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