HP to pay Meg Whitman in a new way
Hewlett-Packard has announced that they will pay their new CEO, Meg Whitman, based on her performance.
Whitman’s compensation package is worth $16.5 million, but it is dependent on her ability to improve things for HP shareholders.
The Financial Times reports that her $6 million bonus does not have a guaranteed pay-out, and 80 percent of her stock options hinge on a specific increase in HP’s shares.
HP says that Whitman’s “target total compensation is positioned below the peer group median.”
The company is aiming to not fall into the trap of constant increase in pay for CEOs that may not be deserved.
Whitman’s $1 salary is an example of why she should be motivated to help HP.
HP fired Leo Apotheker, Whitman’s predecessor, as CEO this past September.
The company has not been the same since CEO Mark Hurd was involved in a scandal in 2010 and consequently fired.
Whitman’s past includes a stint in politics. She ran for governor of California in 2010 but was unsuccessful. The Economic Times reports that she spent over $140 million of her own money on her campaign.
She has also served as the CEO of eBay Inc. She left the e-commerce company in 2008 as a billionaire because of how successful she was there.
