Fired Failed HP CEO getting 7.2 M, 3.6M shares, 2.4M bonus, relocation expenses, etc

[Liberal_in_LA]

for less than one year of work. Stock plunged 45% during his reign

H-P Paying Fired CEO $7.2 Million in Severance

Hewlett-Packard disclosed it agreed to pay ousted CEO Leo Apotheker $7.2 million in severance over the next 18 months, according to a regulatory filing.

In addition, H-P said Apotheker will get to hold onto $3.56 million worth of restricted H-P shares he was awarded when he signed on about a year ago.

Apotheker will also get a $2.4 million bonus for his time at H-P, during which the company’s stock price shriveled. The bonus was due to him under H-P’s “Pay-for-Results Plan,” the company said.

In addition, H-P will coverage Apotheker’s relocation expenses, including a return flight to France or Belgium. H-P also will reimburse its ousted CEO for any loss on the sale of his California house and related expenses, up to $300,000. Apotheker will be reimbursed for health and dental coverage for up to 18 months, H-P said.

http://blogs.wsj.com/deals/2011/09/29/h-p-paying-fired-ceo-7-2-million-in-severance/

http://www.bizjournals.com/portland/news/2011/09/30/failed-hp-ceo-new-top-execs-get-rich.html

[johnd83]

1. How many workers would that pay??

Companies are going broke because the upper management is stealing all the company's money that should be reinvested.

:banghead:

[TheWraith]

16. Assuming an average salary of $50k a year, that's 700 workers. nt

[HughBeaumont]

2. Legalized THEFT.

Must be nice to know no matter WHAT kind of a job you do, you'll be secure in the fact that you'll get a lottery every year, leave WITH a lottery when you get ousted and command even greater lotteries if you do get another position.

Must be freaking NICE.

Are those guillotine blades I hear being sharpened?

[Initech]

6. Seriously - it's theft no matter how you look at it.

It must nice to be a part of "The Big Club" as George Carlin refers to it. You don't even have to work a full year, and no matter how good / bad the company does, you get to walk away with fucking millions and then you still get the luxury of finding another job.

And I passed on buying a new car because I couldn't afford the down payment. :grr:

[hifiguy]

3. Joe Sixpack screws up and he is immediately

ushered out of the building after being fired. Run the whole damned company into a wall and get millions on your way out the door. Ain't capitalism grand?

[Liberal_in_LA]

5. yep. He added no value to the company yet gets to take a big piece on his way out

The HP janitors didn't contribute to the downturn of HP, why don't they get twice what this guy got?

[asjr]

4. Wow! Not bad for one year's "work".

[Yavin4]

7. There You Go Attacking A Job Creator

If we keep attacking them, they won't create any jobs.

:sarcasm:

[Initech]

9. I'm starting to think "job creator" is a made up, BS term.

[jmowreader]

14. I'm really surprised at you over that comment

You didn't know it was bullshit the second it rolled out of a Repuke's mouth?

[Initech]

24. True true.

[Nuclear Unicorn]

8. Man, I need to become a miserable failure.

[nichomachus]

10. What's worse

Is that they're replacing him with Meg Whitman.

[TheWraith]

17. It's certainly one way to make Apotheker look competent. nyt

[HughBeaumont]

21. One of the first round draft picks in the Villain CEO Lottery.

HP seems to attract more than a few of these cash-and-carry thieves, for whatever reason.

They steal and leave the company worse off than before.

Nice work if you can get it.

[Heywood J]

25. Seriously? The lady who turned Ebay into a soulless megacorp?

You've got to be shitting me. "We're sinking and the last two people to run this company have broken our legs. Let's find a third to break our arms too!"

[OhioChick]

11. USA! USA! USA!

Come on people. Pull yourself up by the bootstraps!

[girl gone mad]

12. Might be time for a clawback..

depending on the circumstances.

[sarcasmo]

13. Corporations only know one thing, GREED!

[exboyfil]

18. Somehow we need a change to our system to

address this issue. The stock is mostly held by institution and mutual funds, and they don't seem to take their duties seriously.

Holders Value ($MM) % O/S Shares
Institution 1,607 55,944.73 77.3 1,535,088,209
Mutual Fund 2,836 25,563.45 35.0 695,743,075
Insider * 79 2,825.65 6.1 121,847,855




Top Holders
State Street Global Advisors (US) 106,406,820 5.4 -1,707,292 06/30/11
Dodge & Cox 105,166,453 5.3 12,694,973 06/30/11
BlackRock Institutional Trust Company, N.A. 102,971,215 5.2 34,485,863 07/31/11
Vanguard Group, Inc. 80,313,202 4.0 -2,163,412 06/30/11
Capital Research Global Investors 46,515,000 2.3 14,000 06/30/11
State Farm Insurance Companies 42,070,800 2.1 0 06/30/11
Fidelity Management & Research Company 35,828,367 1.8 -3,174,204 06/30/11
T. Rowe Price Associates, Inc. 32,633,625 1.6 6,849,496 06/30/11
AllianceBernstein L.P. 26,495,002 1.3 -27,688 06/30/11
Paulson & Co. Inc. 23,500,000 1.2 -1,500,000 06/30/11

Top Holders: Mutual Funds
Dodge & Cox Stock Fund 51,464,995 2.6 5,300,000 06/30/11
Vanguard Total Stock Market Index Fund 24,391,900 1.2 -349,887 06/30/11
American Funds Investment Company of America 22,040,000 1.1 0 06/30/11
Vanguard 500 Index Fund 18,615,313 0.9 -1,065,055 06/30/11
SPDR S&P 500 ETF 17,042,754 0.9 1,152,972 08/31/11
Vanguard Institutional Index Fund 16,772,604 0.8 -443,611 06/30/11
Vanguard Windsor II Fund 16,757,587 0.8 -42,630 06/30/11
Dodge & Cox International Stock Fund 14,780,000 0.7 3,380,000 06/30/11
Statens Pensjonsfond Utland 13,815,342 0.7 -1,466,064 12/31/10
CREF Stock Account 12,913,687 0.7 -798,609 06/30/11

[PA Democrat]

15. That is why they make sure their board of directors is loaded with their good buddies.

They serve on each other's boards so they can take care of each other in good times and in bad. It's an exclusive little club and is technically called interlocking directorates.

[otohara]

19. Failue Pays Off in Corporate America

now watch this guy will go find another job at a higher pay somewhere else.

[valerief]

20. Well, I'm sure he earned it all.

:sarcasm:

[ck4829]

22. Remember, they need to reward his... "Talent" or else he won't want to work anymore (LOL!)

[Supersedeas]

23. it's a different world than the one you and I live in

[neverforget]

26. How can I fail and be rewarded like that?

:shrug: