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HP Spent Over $80M To Get Rid of Its CEOs

Posted by samzenpus on from the and-here's-a-parting-gift dept.

hapworth writes "Analysis published today shows that Hewlett-Packard has shelled out over $80 million to get rid of three CEOs since 2005. The first CEO to take her expensive exit, Carly Fiorina, received over $42 million, once stocks, options, and pension are factored in. Mark Hurd, after just four years, received $12.2 million to take his exit; and now, after 11 months, Leo Apotheker will walk out with a reported $25.2 million in severance. With eBay's Meg Whitman in as the new CEO at HP, industry analyst Robert McGarvey writes today that 'the HP gig could help Whitman replenish her personal coffers, depleted by the pumping of $119 million into a futile bid to become California's governor.'"

5 of 261 comments (clear)

  1. Where are the shareholders? by bill_mcgonigle · · Score: 4, Insightful

    The Board keeps choosing bad CEO's. Why do the shareholders keep re-electing them? Where are the institutional investors on this? I guess it's their company to destroy, if they really want to.

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    1. Re:Where are the shareholders? by doconnor · · Score: 5, Insightful

      One problem with shareholder democracy is that if a shareholder doesn't like the management of the company it is far easier for them to sell the stock and forget about it then to work to elect better management.

      A lot of people have been selling their HP stock recently.

  2. Interesting... by Ecuador · · Score: 4, Insightful

    The one who was considered successful by all (Hurd) was the one with the least compensation (by a huge margin if you consider his years on the job vs Apotheker). It is no joke we say the worse you do as a CEO the more money they pay you!

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  3. Why does this happen? by MrCrassic · · Score: 4, Insightful

    Why is it that even poorly-performing CEO's get incredibly huge severance packages? I can understand CEOs that actually helped raise a company getting nice parting gifts (like Lou Gerstner and Bill Gates), but shouldn't leaders that, effectively, failed to lead? get much, much less?

  4. Re:I've got a better deal by cayenne8 · · Score: 4, Insightful
    What does one study to become a CEO??

    I'd love to get that job...tons of money when you're there...tons when you leave, and then...it seems, there are job opportunities after you leave, even in disgrace.

    I don't see any perceptible skills required to be a CEO...is it all only who you know?

    I mean, I'm member and good standing with the "anything for a dollar" club....so, wondering how I could get into the CEO business, and yes...I'm quite willing to sell shares of my soul for this.

    :)

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