Fired HP CEO takes home some bank after destroying billions in market cap and market share value.
I have a new strategy. Interview for the highest paying jobs .. promise the moon…piss everyone off … don’t deliver… get fired…..then retire!!!
Peter Drucker would be proud
On the job as chief executive for not even 11 months, Leo Apotheker will leave HP (HPQ, Fortune 500) a wealthy man: He has already taken home most of his $1.2 million annual salary, a $4 million signing bonus, and an additional $4.6 million awarded for relocation assistance and to offset payments that he forfeited from his previous employer, SAP.
Apotheker was ousted on Thursday, but he’ll collect more money on his way out the door. The former CEO will take home $7.2 million in cash as severance, plus $18 million more in stock.
According to the employment agreement HP signed with Apotheker in September 2010, the company will owe him twice his salary and twice his average performance bonus in cash as a goodbye payment. Since Apotheker didn’t stick around long enough to collect a performance bonus, the company will just use his bonus target as the “average,” which is equal to twice his salary.
Additionally, nearly all of Apotheker’s stock grants will vest immediately, giving him access to about 800,000 shares of HP. Apotheker had not stayed on long enough to see any of his stock grants vest on the planned schedule — most were supposed to be given to him annually over the course of two years. Only one stock grant, a 120,000-share grant that was supposed to be doled out gradually as a three-year reward, will be pro-rated.
At today’s closing share price of $22.80, those grants will be worth $18.2 million. Combined with the cash, Apotheker will take home $25.4 million.
Apotheker is just one of three HP CEOs to be ousted in the past six years.
Mark Hurd, who exited HP scandalously, received a cash severance payment of $12.2 million. He was eligible for about $53 million in pay and perks upon his termination, but in a settlement with HP over his decision to take an executive job at Oracle (ORCL, Fortune 500), Hurd opted to drop all of his equity grants.
HP CFO Cathie Lesjak filled the gap between Hurd and Apotheker. As thanks for her three-month CEO stint, she was granted a $1 million cash bonus and $2.6 million in stock grants in recognition of her “exceptional service,” according to a regulatory filing.
And Carly Fiorina, who resigned (read: was shoved out the door) as CEO in 2005, was given a $21.4 million cash severance in addition to another $21.1 million in stock grants.
In all, the ousters of its past three CEOs, including the bonus for the interim CEO, have cost HP $83.3 million
First off, phwehh you've finally created a space for your unfiltered voice. My favorite moments while Directing #theCube are the times when you and I get a chance to go out back and decompress after a whirlwind on-air session. While at HP Discover this year you could sense the near freak-out emotional status of most of their PR worms. (I generally have a disdain for mid-level Corp. PR spokeholes who are more interested in staying in their prepared pr speak rather than emitting any sense of humanity.) The PR leads were however professional and experienced enough to know how to lessen an on-coming train wreck. When Leo canceled his much lauded/ anticipated appearance on #theCube we were all disappointed. That is, until we saw his implosion that was the key-note. I remember turning to one of the HP handlers and saying I understand now why you would want to keep him away from cameras.
I am a bit concerned though that HP Labs may have lost a huge advocate in Leo. As we heard over and over during the broadcast - HP under Leo was firmly committed to unlocking the full potential of the LAB.
One thing about Meg is clear- she's willing to spend unabashedly for ideas she believes in. I trust that she is putting innovation first and will continue to empower Prith and his team at the LABS to do the impossible everyday.
[Disclosure: Michael Sean Wright is a live Documentary Filmmaker and founder of OpenSource Film entity nicefishfilms, is not employed by or speaking for SiliconANGLE or any of their affiliates (so yeah, I can say what ever I want.) MSW is passionate about emerging technology and evangelizing social innovation for a better world.]
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