HP boss Leo Apotheker has negotiated financial compensation package worth roughly £29 million
Youngsters wishing for the financial rewards of being a movie star or sportsman should rather consider a career managing large IT businesses.
Hewlett-Packard filed a regulatory report 1 February with the Security and Exchange Commission in which it detailed the compensation package for its new CEO, former SAP executive Leo Apotheker.
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 (£741,000), a $4 million (£2.5 million) cash signing bonus, and $4.6 million (£2.8 million) in relocation costs and reimbursement for non-compete payments from SAP.
There’s more. HP also gave its new CEO a large chunk of restricted stock – $38 million (£23 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 ousting 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 6 August, 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.
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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 2 February 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.”