HP will pay its ousted chief executive officer up to $US13.5 million ($A13.9 million) in bonuses and severance pay for 11 months work, revealed company filings to the US market regulator.
Leo Apotheker will get severance pay of $US7.2 million and a $US2.4 million annual bonus as part of HP’s “pay-for-results” plan.
He was eligible for an annual bonus of $US2.4 million next year and had the option to buy 1.9 million HP shares. And he was awarded vesting of share grants worth $US3.56 million.
HP will reimburse Apotheker, formerly SAP chief executive officer, for relocating to France or Belgium and reimburse him for losses of up to $US300,000 following the sale of his California house.
HP's board removed Apotheker last week after a tenure marred by decisions and miscommunication that rattled customers and partners. The Silicon Valley anchor tenant saw its share value fall around 45 percent - half of that on the day last month that Apotheker said it was selling its PC business.
Incoming chief executive officer Meg Whitman will be paid $US1 a year but she has the option to buy 1.9 million HP shares and is eligible for a bonus next year of between $US2.4 million and $US6 million.
The man who Apotheker replaced and who was credited with turning around the company, Mark Hurd, negotiated a severance packaged of about $US12 million; his predecessor, Carly Fiorina received more than $US21 million when she was forced out in 2005.
When Apotheker signed on for the top job last November he agreed to a base salary of $US1.2 million and an annual bonus of between 200 percent and 500 percent of his salary. During his tenure he received thousands of shares. He received a $US4 million signing bonus and $4.6 million for relocation expenses.
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