Sun, Jan 13, 2013 - Page 13 News List

HP boss earned ‘only’ US$15.4m

FOR LOVE OF LABOR:Hewlett-Packard’s chief executive officer Meg Whitman took a salary of US$1 last year as she works to boost company growth

Bloomberg

Hewlett-Packard Co’s (HP) Meg Whitman received nearly US$15.4 million in fiscal 2012, her first full year as chief executive officer, receiving only 70 percent of her targeted compensation as it posted a net loss for the year.

Whitman, who took a salary of US$1 last year, reaped a performance-related bonus of US$1.7 million, more than US$7 million in stock awards and US$6.4 million in options, Hewlett-Packard said in a filing on Friday.

Whitman, who was already on the board, became CEO in September 2011, just before the end of that fiscal year.

In that period, her compensation was US$16.5 million.

Shares of Hewlett-Packard have declined 39 percent in the past year, as Whitman works to turn around the world’s biggest supplier of personal computers after five straight quarters of declining sales and years of botched deals, management tumult and strategic missteps.

The stock decline has reduced some executives’ pay from previous years, according to Friday’s filing.

The company underperformed the index by a large enough amount that the executives received none of the stock. It fell 70 percent after dividends in the period, while the S&P 500 returned 45 percent.

Hewlett-Packard overhauled the compensation program last year and scrapped the practice of comparing the company’s stock performance to set pay.

It is now handing out stock options that vest if the stock price exceeds certain thresholds.

Among other top executives, chief financial officer Cathie Lesjak earned US$6.7 million last year, compared with US$11 million in 2011.

Executive vice president Todd Bradley, who heads the company’s personal computer and printer group, made US$7.4 million last year, compared with US$10.7 million the prior year.

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