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HP's New CEO Gets a $4 Million Signing Bonus

by Melly Alazraki Oct 1st 2010 10:04AM
Updated Oct 1st 2010 10:19AM
New HP CEO Leo Apotheker Gets a $4 Million Signing Bonus Hewlett-Packard (HPQ) shares dropped more than 3% in premarket trading Friday, a day after the company named Leo Apotheker, former head of German software giant SAP (SAP), to replace Mark Hurd as CEO. Apotheker is set to start on Nov. 1.

According to HP's Securities and Exchange Commission filing, Apotheker will get a base salary of $1.2 million for the next two years, after which the board will review his compensation. In addition, his annual incentive for fiscal 2011 will be at least 200% of that base salary, up to a maximum of 500% of the base salary: In other words, his minimum pay will be $3.6 million.

That will be accompanied by 76,000 shares of common stock and a generous stock plan. But that's not all: Apotheker will get a signing bonus of $4 million and $4.6 million as a relocation allowance.

And just to further demonstrate how executive compensation is so different than the average Joe's, here are some other terms of his employment agreement:
  • Vacation: While HP doesn't say exactly how much paid vacation Apotheker will get, he will "In no event ... receive less than twenty-five (25) days of paid vacation time per employment year."
  • Perks: Again, while no specifics are supplied, the mention of the use of the company jet is.
Hurd, who was ousted last month in a sexually tinged expenses scandal, already received a generous severance package that upset many shareholders. It took a while for HP's board to find his replacement, and judging from the company's share price movement Friday morning, investors aren't too happy about Apotheker's appointment, or his compensation package either.

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Jerry

Wasn't Hittlers SS all CEO's at one time?

October 03 2010 at 5:56 AM Report abuse rate up rate down Reply
ruthsgardens

Actually this is a classic example of corporate america.And to the one poster that said at least their taxes were not paying this ceos salary, needs to spend some time googling the corporate tax loopholes.And the tax system as a whole.In fact every american with a puter should.You would then realize that the very first thing that americans need most is the revamping of the tax system.Our government loses out on recieving a little less than 1 trillion dollars a year to the corporate tax loopholes.And that is not including tax breaks the government gives americans either.Corporate tax sounds like a tax that corporations have to pay on their wealth doesn't it? Nope.In fact almost all of corporate tax is paid by shareholders and you guessed it,Taxpayers.This is corporate america and ceos give these companies corporate tax statuses.To reflect on the change in history, we have to understand the past.At the onset of the industrial revolution, 25% of working americans were farmers.The rest were rich and poor.The railroads lead the way.This was grueling work 7 days a week,12 hours a day and more for paltry wages.Sure it was better than being dirt poor until you dropped dead or was killed in explosions making the rails.The steel,oil and coal industries boomed as fast as the rails went down.But not the wages only the workload.American workers already began utilizing their right under federal law to unionize for better wages,pensions and benefits.They fought the railroads just for better wages and less hours.The following steel,oil and coal industries was even more grueling for even less.American workers fought to unionize them to.Eventually american workers got it down to 6 days a week,10 hours a day.A steel worker brought home 35 dollars every 2 weeks.Some will say that,that was good money back then.No it wasn't. But it was a little more and beat being poor.Working americans could save a little, creating more banks.And buy a house and send for their family to come.They could spend a little more which boosted other businesses and their own.They could invest a little which boosted other businesses and their own company to.The 10% of profits which were set aside by companies to pay for labor is what the american workers signed contracts with their employers for.They delegated by voting where the 10% should be divided up.The workers voted for how much of the 10% went towards wages,pensions and benefits.Companies began expanding,manufacturing plants sprung up everywhere and america prospered and so did the owners.But when the companies got to big for the owner to handle,the blight set in.Yes corporate america.Owners formed board of directors.These boards took away a lot of the power of the owner.They began to hire lawyers,lawyer groups,consultants and consultant groups,higher management and ceos.That consumed 25-35% of an owners profits.The owners then lost their sayso of the company, but gave them corporate tax statuses.They first destroy the unions and cut wages,benefits and pensions.Now only 12% of working americans are union.They do the same with non-union companies.They utilize the tax loopholes and shelter the owners profits and their own.They pay employees using credit.So if there is a loss or a company goes bankrupt,the employees lose everything and are written off.The owners and corporate america pocket the profit or outsource the jobs elsewhere.Or they just sell it to anyone.If the foreign countries don't buy it,lawyer groups do and milk it reducing wages as close to minimum wage and cutting all pensions and benefits and still sell it overseas.All because of an owners greed of not wanting to give american workers their 10% they ask for.If a president doesn't address the tax loopholes or the trade agreements which allow corporate america to do so,there won't be any jobs left to outsource.You got a puter,use it.Start with your congressmen.Congress and senate.gov and org.

October 03 2010 at 2:56 AM Report abuse +1 rate up rate down Reply
KING PETER

just another overpaid worthless dork ripping off the employees

October 03 2010 at 2:53 AM Report abuse rate up rate down Reply
Hello Vetra

THE LAST CEO I WORKED WITH DIDN'T EVEN KNOW HOW TO PRINT ANYTHING ON A COMPUTER LOL

October 03 2010 at 1:53 AM Report abuse rate up rate down Reply
Hello Vetra

I find this totally absurd. No one man can do enough work to justify this amount of money. If he were any kind of decent human he would take the 1 million and live extremely well on that amount. How can he lay his greedy self down and sleep? Why doesn't he donate the rest of his money and perk values to the thousands of AMERICAN WHO ARE HUNGRY AND HOMELESS, due to the outsourcing of jobs from these monster companies. I always gets INDIA if I have a computer problem and finally told one rep. I needed to talk to someone that could really speak ENGLISH as a first language. Come on AMERICA here is one way we can fight back---if their stock dropped 3% today-----lets make it drop everyday. DO NOT BUY ANOTHER HP PRODUCT----I WON'T GOOD BYE HP HELLO APPLE!~@@@@@@@

October 03 2010 at 1:47 AM Report abuse rate up rate down Reply
hareglsl

I'll never own an HP,,,,,in this day and age of cutting back how could someone get such a bonus and salary ? I hope HP folds, and if congress bails them out I hope a plague befalls all of them , and all their family.

October 03 2010 at 1:44 AM Report abuse +1 rate up rate down Reply
jeffnewmil

I think the relocation money is the most outlandish!! 4.6 million to relocate???? It's just all out of whack...

October 02 2010 at 10:55 PM Report abuse rate up rate down Reply
1 reply to jeffnewmil's comment
Hello Vetra

The re-location money is so he can buy a 20 or 30 million dollar home--few new cars---new furniture ------clothes get the pic. I sure would love to go to the family moving yard sale wouldn't you?

October 03 2010 at 1:49 AM Report abuse rate up rate down Reply
Chris

Let's see how many more jobs he can "outsource". I will NEVER again buy HP. My computer was still under warranty when it crashed. After calling service techs in Puerto Rico, Phillipines, and other countries, still no resolve. HP said send us the bill for the repair. 6 months later and still NO repayment by HP. They are losing business/customers by the thousands

October 02 2010 at 10:11 PM Report abuse +1 rate up rate down Reply
1 reply to Chris's comment
loremikshe

That CEO Union sure beats them other unions hey?

October 02 2010 at 11:53 PM Report abuse rate up rate down Reply
john L.

How much will he get when he walks away after he does major damage to HP and their shareholders? In todays world....the Ceo and CFO always pocket after they have raped the companies they have screwed over! Why on earth does anyone get a walkaway bonus package for doing lousy is beyond me? 4 million up front ..lord knows what he gets when he leaves......what a joke...and Obama claims to have a handle on this nonsense? This is another example of what is wrong with out of control Capitolism! Everyone pays for the very greedy few!

October 02 2010 at 9:42 PM Report abuse +3 rate up rate down Reply
dsmithsfamily

HOW FULL OF YOURSELF WOULD YOU HAVE TO BE TO EVEN TAKE THAT MUCH

October 02 2010 at 9:24 PM Report abuse +1 rate up rate down Reply
1 reply to dsmithsfamily's comment
jennifer

I can't understand what his job description would be to warrant that salary. However, I would rather this man receive his millions than support lazy people with my taxes. And to dsmithsfamily .... I would take it in a heartbeat and so would you. Who are you kidding????

October 02 2010 at 11:26 PM Report abuse rate up rate down Reply