Executive team takes home over $65 million despite missed targets.
HP paid its executive management team over $65 million in 2012, including $15 million to CEO Meg Whitman, despite the firm having one of the worst financials years in recent memory.
Whitman took home a token salary of just $1, but was awarded $7 million in stocks, $6.4 million in options and over $1.6 million in an incentive plan. However, the CEO’s pay packet was reduced year-on-year as she had taken home over $16 million in 2011.
According to the SEC filing, Whitman could be set to get another increase in 2013.
“Since the CEO salary is currently set at $1, we use an imputed salary of $1.2 million, which is a competitive salary for a CEO in our peer group, to calculate Ms. Whitman's ownership requirement, thereby requiring her to hold shares with a value equal to at least $8.4 million within five years of joining HP.”
Members of the HP executive team also took home bumper pay packets. Catherine Lesjak, EVP and CFO did have her pay cut in half year-on-year, but received $6.7 million in compensation.
Meanwhile, David Donatelli, EVP and GM of the Enterprise group was paid $10.63 million, whilst Todd Bradley, EVP of printing and personal systems, took home $7.3 million.
Interestingly, the entire HP management team earned considerably more than Apple CEO Tim Cook, despite Cupertino being on a greater financial footing due to the popularity of iPads and iPhones.
Cook took home just $4.17 million in 2012. However, he did receive $378 million in 2011 via stock options.
Despite being the world’s largest PC manufacturer, HP has seen its revenue and shares plummet in the last 12 months. The firm has struggled to keep up with firms such as Apple and Samsung as it has failed to gain traction in the mobile market and PC sales have slumped.
HP was also forced to write-off over $8 billion it used to pay for Autonomy – claiming that it overpaid for the UK software firm due to “accounting misrepresentations”.