Wednesday 30 March 2005

Meet HP's new boss. Frying pan, meet fire?

So it's official. The NCR slash'n'burn supremo comes to HP, with the "unanimous" support of the HP board. Well, they would say that, wouldn't they?

Interesting how the public statement makes no mention of Carly, as if she's been airbrushed from history in true Soviet style. The closest it gets is to say that Hurd "replaces Wayman," who "was named interim CEO in February."

The 8-K is now out. Here are the high points...

  1. Salary is between $8.4M-$22.4M ($1.4M base + 500% between 1500%). Although one could read it to mean that some of the bonus minima were zero, it also says that the first year's bonuses would be paid assuming target performance.
  2. Golden hello of 1,150,000 share options at today's price and $10M in shares and cash. Most of the options are protected against falls of up to 20% in value.
  3. Relocation package including $2.75M "allowance."
  4. At least 25 days paid vacation.
  5. An unspecified mortgage subsidy for four years.
  6. Rent-free housing for one year.
  7. If sacked, he gets $3.5M, vested options, and health care.
Let's imagine that HP stock goes up a modest 10% in a year. That makes his first year worth a minimum of $24M. Wow.

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