HP CEO to Get Bonus Feb 28, 2003

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Carly Fiorina, the chief executive of Hewlett-Packard, was granted a U.S. $2.9 million bonus in fiscal 2002 following her company's controversial $19bn acquisition of Compaq Computer. Ms. Fiorina's bonus, granted in addition to her $1 million salary, was partially due to her additional responsibilities in the wake of the Compaq transaction in May 2002, HP said in a regulatory filing.

HP's compensation committee last year rejected a proposal that could have handed Ms. Fiorina and the former Compaq chief executive, combined compensation of $115 million following the merger.

The chief executive was also granted 850,000 stock options with a present day value of $6.8 million. HP also awarded options worth $3.2 million to Bob Wayman, the group's CFO, Duane Zitzner, the head of personal computer sytstems group, and Ann Livermore, head of the services business.

Ms. Fiorina was thrust into the spotlight when she was forced to wage an aggressive proxy fight against dissident director Walter Hewlett, who tried to thwart the proposed merger. The merger was approved by just over 50 percent of shareholders. Shareholders will soon get a chance to vote on a proposed bonus plan that would entitle Ms Fiorina $12 million bonus annually. HP has not yet negotiated new employment agreements with Ms Fiorina and other senior officers since the merger.

Amongst other perqs, the company paied $14,950 for "tax services" for Ms Fiorina. HP also paid $125,383 mortgage assistance in consideration of her relocation when she arrived at the company in July 1999. (Financial Times)

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