According to the Wall Street Journal, and a regulatory filing, HP will pay ousted CEO Leo Apotheker a severance payment of $7.2 million over 18 months, an annual bonus of $2.4 million, in addition to stock.
Apotheker was CEO of HP for 11 months.
In addition to the severance, bonus, and stock, Apotheker will receive:
- Payment of relocation back to Eurpose and any loss he incurs on the sale of his California home
- Health benefits for Apotheker and his family for 18th months
- Legal fees incurred during the negotiation of the agreement
In short, it can obviously be expensive to hire and then remove a CEO from a publicly traded tech company.
The HP board moved quickly to remove and replace Apotheker with Meg Whitman, as we reported previously.
There have been numerous rumblings leaking out of HP over the past few months, including that HP is being sued by shareholders who believe that the company over dropping webOS hardware and moving the company into a direction they didn’t agree with.
Many believe Apotheker gave none of HP’s new initiatives, including webOS, a chance to grow, therefore the change was made.
Incoming CEO Meg Whitman, also according to WSJ, will be paid $1 per year.