HP CEO Mark Hurd received compensation the company valued at $26 million for the 2007 fiscal year. Hurd, 51, took home $1.4 million in base salary, another $1.4 million in bonus money and nearly $12 million in cash incentive payouts.Hurd also received shares of restricted stock valued at $6.8 million and stock options worth nearly $4 million during fiscal 2007, which encompasses the 12-month period that ended Oct. 31. Also included in Hurd's pay package was $515,000 in additional compensation, including more than $138,000 in restricted stock dividends, nearly $126,000 in expenses for home security services and a mortgage subsidy of about $111,000.
In addition, Hurd made $4.8 million on stock options he exercised, and he had $7.4 million worth of HP stock vested during the latest period. The company has cut costs by consolidating data centers and corporate offices and aggressively slashing its headcount, including the elimination of nearly 15,000 jobs in a massive restructuring launched shortly after Hurd's arrival as CEO and completed in October.
Some 3,000 workers also left the company as part of an early retirement program that HP initiated last year. Investors have been pleased with the changes. Since Hurd took the reins of HP in April 2005, the company's stock price has more than doubled, from around $20 to more than $40 today, a rise that has created more than $50 billion in additional shareholder wealth.
The Associated Press' calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. They may vary from totals that companies report.
HP calculated that Hurd's pay package was worth $25.3 million.
Business Week names Mark Hurd