Mark V. Hurd, the new chief executive of troubled computer and printer maker Hewlett-Packard Co., will receive cash, stock and perks worth at least $20 million--all for doing nothing but walking in the door at HP's Palo Alto, Calif., headquarters, according to the Washington Post.
Hurt, in stark contrast to his controversial and high-profile predecessor, Carly Fiorina, is regarded as a nuts-and-bolts manager with little interest in self-publicity, the Post reports. Still, his deal is a prime example of the kind of "golden hello" package now commonly handed out by large public companies, said Paul Hodgson, senior analyst at the Corporate Library, a research organization.
"This is exactly the same kind of contract they made for Carly when she started, and we saw what the result of that was," Hodgson said. "Hurd is getting so much up front that is absolutely unrelated to his performance."
The Post reports that Hurd's package includes a $2 million signing bonus, a $2.75 million cash "relocation allowance," 1.15 million stock options valued by the company at $6.9 million, and 400,000 restricted HP shares worth about $8 million.
But wait! there's more:
- In addition to the relocation allowance, Hurd will also receive free housing for a year and a four-year "mortgage interest subsidy." There will also be "no limit on the weight of household goods" he chooses to ship to California, according to the agreement.
- The contract calls for HP to reimburse Hurd for up to a 20 percent decline in the value of 850,184 shares he owns in the firm he is leaving behind, Dayton, Ohio-based NCR Corp.
- In addition to the signing money, Hurd's contract calls for an annual salary of $1.4 million, an annual bonus of at least $2.8 million and as much as $8.4 million, and long-term incentive payments of between $4.2 million and $12.6 million per year.
Source: The Washington Post, via Yahoo!