02-15-2005, 09:21 AM #1
HP stockholders and workers.......
Do you think this kind of compensation is deserved or appropriate???
Is being a CEO just like a lottery prize or should there be some restraint here.
* Fiorina walks with $45 million
But windfall for former HP boss is less than the $65.5M in stock options she received in 1999.
February 15, 2005: 8:12 AM EST
SAN FRANCISCO (Reuters) - Carly Fiorina, who was ousted last week as chairman and CEO of Hewlett-Packard Co., will have received $45 million worth in stock options and severance pay on top of her regular salary and cash bonuses after five years at the company, a spokeswoman said Monday.
The $45 million is based on the current value of roughly $23.5 million in previously awarded stock options and a $21.4 million severance package awarded to Fiorina after she resigned last week.
"It comes to $45 million or so," HP spokeswoman Brigida Bergkamp said. "This is just what she can exercise now."
The figure excludes a $3 million signing bonus awarded in 1999, 5.8 million stock options at exercise prices above current share prices, and Fiorina's annual salary and bonus. Her salary averaged about $1.2 million in recent years and she has received more than $1.5 million in bonuses.
Were the value of HP (Research) shares to rise significantly in the wake of her departure, the "out of the money" options could be worth additional millions.
But Fiorina's payout is substantially less than when she joined the company with a mission to transform the sometimes-insular culture of Silicon Valley's first start-up, as the stock price fell sharply during her tenure.
When she arrived at HP in 1999, Fiorina received restricted stock worth about $65.5 million in inflated tech-boom stock prices, Bergkamp said.
Those are now worth $18 million, reflecting the subsequent bursting of the tech bubble in 2000 and a 58 percent drop in HP's stock price while Fiorina was in charge.
As part of the $23.5 million, Fiorina stands to receive a retirement plan worth about $1.5 million if she elects to receive the pension as a lump sum, Bergkamp said.
HP shares ended Monday down 53 cents at $20.77, a drop of 2.5 percent, on the New York Stock Exchange.
Fiorina received a $1 million bonus based on HP's performance in the first half of 2004. No similar bonus was paid to Fiorina or other top HP executives for the second half of last year, according to HP's proxy released Friday.
In August, the company disappointed Wall Street with a surprise shortfall in its fiscal third-quarter financial results, an event that analysts retrospectively say set in motion moves to restructure management that led to Fiorina's ouster. *
02-15-2005, 09:31 AM #2
Only if she has me be her man-whore.
For that kindo cash I'd be her biatch.
02-15-2005, 09:33 AM #3
Its a public company, they have to disclose everything they are doing to their shareholders. If the shareholders do not like what they are doing, they can vote to make changes. If you open any annual review (prosepectus) for a specific stock, it shows (for the top dogs) what they have been awarded as far as stock, salary and so on. What's wrong with people making money anyways? Taking stock is a risk that most people are willing to take. IF you think about it, she lost millions on the deal.
"When she arrived at HP in 1999, Fiorina received restricted stock worth about $65.5 million in inflated tech-boom stock prices, Bergkamp said.
Those are now worth $18 million, reflecting the subsequent bursting of the tech bubble in 2000 and a 58 percent drop in HP's stock price while Fiorina was in charge."
02-15-2005, 09:39 AM #4
I have a friend of the family that works for HP and we discussed this issue this past weekend.
I wish I could get fired for not doing my job properly or successfully and get millions of dollars anyway.
I figure she had an empowerment contract with them and this was the cheapest way for them to get out of the contract.
It's bull sh!t for the guys at HP who won't get a raise this year because of company loses.
02-15-2005, 10:06 AM #5Originally Posted by Bigen12
02-15-2005, 10:08 AM #6
Don't get me wrong, I am not advocating government involvement in this or any similar private corporate dealings, this is something that the stock holders should handle themselves.
02-15-2005, 10:15 AM #7
Publicly traded company is help up by private money so I don't have a problem with it. If you don't like a company's executive comensation structure, perhaps you are better suited investing in TBills, GVT bonds, real estate, or a more prudently run publicly traded one.
02-15-2005, 10:31 AM #8
This is the reason my next job I'm going to be a CEO...of course I'm going to lie my ass off in my resume but once I'm in the door I'll pass the buck until I get caught and then get fired and move onto the next one.
You can hold up a gas station and get 20 years...for $18 worth of loot. You scam a company for millions and you'll do 5-10 in a Fed pen and work on your tennis game. White collar crime is where it's at!
02-15-2005, 02:03 PM #9AR-Hall of Famer / Retired
- Join Date
- Aug 2001
- Wherever necessary
it seems excessive to be sure - but these kind of contracts is usually what it takes to steal these executives from whatever company they are at now to come to yours - its much like a baseball contract or that of a NFL Quarterback - they get guarantees before they sign and then they have incentive bonuses for performance of various sorts - I notice badgerman isnt jumping up and down how all the money from MLB could be spent to help the poor
Reality is that it is a business with shareholders - and while ma and pa shareholders have little say its true - the large funds with sizeable holdings most certainly DO have a say and they watch over the management of the company as much as can be expected - their interests are to make sure the stock stays high
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