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Weekly Ad#inTheNews {min-height:20px;} Advanced Search Advanced Search X include all of these words: include any of these words: include this exact phrase: exclude: Select a date range this week past 30 days past 3 months past year Create a custom date range From: To: TechnologyThe business and culture of our digital lives, from the L.A. TimesMeg Whitman gets 1.9 million HP stock options, Apotheker wins tooSeptember 30, 2011 | 11:24am
Meg Whitman is taking a $1 annual salary for her position as the new chief executive of Hewlett-Packard Co. But don't think she's working for peanuts.
As part of her compensation package, Whitman was also awarded the option to buy nearly 2 million shares of HP stock, which if vested today would be worth nearly $45 million. As with many executive-level options packages, however, the shares won't vest immediately: Whitman won't be able to cash in at least 900,000 of them in until a year from now.
The vesting of these shares is also tied to the performance of the stock price -- if HP's stock doesn't achieve certain levels of growth, in other words, Whitman can't use them.
Or can she? If you look at the severance agreement that recently sacked HP CEO Leo Apotheker got, you'll see that a CEO can still reap huge stock payouts even if he gets fired for lackluster performance.
Apotheker, who presided over a nearly 40% decline in the price of HP stock, is walking away with a $7.2 million cash severance, as well as a $2.4 million annual bonus and $3.5 million in stock options. But he might also reap a windfall of another 425,000 options (worth $9.7 million if cashed in today), provided the company does well ... under Whitman.
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-- David Sarno
Photos: Leo Apotheker and Meg Whitman. Credit: Reuters.
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